Cohort clinches EUR19m deal for EID

The deal, the company’s biggest to date outside the UK, will be financed from the group’s existing facilities, Cohort said in a statement on Wednesday.

Group chief executive Andrew Thomis described the acquisition of the supplier of advanced electronics, communications and command and control products to the military industry as an “important step” for the group.

“It adds to the group a highly capable provider of communications systems that has demonstrated the quality of its products through export success in a number of important territories,” he said.

"EID has a strong order book and excellent prospects with both domestic and export customers.

“As Cohort's first non-UK company it brings us a new domestic market - and the opportunity to offer all of the enlarged group's products and services to the existing customers of both EID and Cohort.”

Cohort said the transaction, which is still subject to regulatory approvals by Portuguese authorities, is expected to be completed by the end of September.

In 2014, EID posted sales of €14.5m and earnings before interest and tax of €1.4mln, while at the end of March 2015 it had been commissioned to carry out work worth €12.4m in revenues.

Cohort shares were up 4.19% to 348.00p at 0903 BST on Wednesday.