Source: http://www.electronicsweekly.com/Articles/2008/01/16/42942/cobham+makes+416m+us+technology+acquisition.htmCobham makes $416m US technology acquisition
by Alex Mayhew-Smith
Wednesday 16 January 2008
Defence technology company Cobham has expanded its US business with the agreed acquisition of intelligence and missile defence firm Sparta.
Cobham is paying $416m in cash for the company, adding to its 3,600 staff already in North America. In 2006 Cobham saw 46 per cent of its revenues come from the US – about £465m. The firm estimates that with the addition of Sparta and Lansdale Sensors and Antennas sales, US revenues in the last 12 months would have reached $1.4bn – around £700m.
Cobham will pay $381m on completion of the deal and another $35m over three years to holders of unvested options who remain with the company. The deal is expected to be done in Q2 this year.
In 2006 Sparta had operating profits of $28.6m and Cobham said the acquisition will enhance earnings in 2008.
Cobham's chief executive Allan Cook said: "The strong incumbent management will provide Cobham with an exciting platform for growth in the systems engineering and technical assistance segment, which is complementary to our existing US intelligence and defence capabilities. This is a major step forward in the implementation of Cobham's technology strategy and the creation of a significant tier 2 business supplying the US Department of Defence and intelligence markets."
Source: http://www.tradingmarkets.com/.site/news/Stock%20News/993586/Cobham to buy missile defence firm Sparta for 416 mln usd in cash UPDATE
Wednesday, January 16, 2008; Posted: 04:31 AM
LONDON, Jan 16, 2008 (Thomson Financial via COMTEX) -- CBHMF | news | PowerRating | PR Charts -- Cobham PLC said it has agreed to acquire US defence company Sparta Inc for 416 mln usd.
The purchase of employee-owned Sparta will put the company in a leading position within the high-growth US intelligence and missile defence markets, Cobham said.
The cash consideration for Washington-based Sparta is up to 416 mln usd on a debt and cash free basis, of which 381 mln will be payable on completion, with around 35 mln to be paid over the next three years to holders of unvested options who remain with the company.
The acquisition of Sparta, which performs a range of scientific systems engineering and technical services for the US military, will boost Cobham's presence in the US, said chief executive Allan Cook.
"It will place Cobham in a leading position within the high-growth US intelligence market. Sparta have got strong capabilities in those areas that are complementary to what we do in our defence and electronics side and also we have our own law enforcement and national security businesses operating in the US and Europe. They have many contracts with the US Department of Defence and they have a very strong customer base," Cook told Thomson Financial News in a telephone interview this morning.
Cobham also purchased Lansdale Sensors and Antennas late last year. The company claims its pro-forma US revenue in the last twelve months would have been around 1.4 bln usd, including the Lansdale and Sparta purchases.
"Our aim is to continue to implement our strategy. We will continue to look for strategic acquisitions in the markets we operate in," added Cook.
At 8.25 am shares in Cobham were 2-1/2 pence or 1-1/4 pct lower at 199 pence. r.jones@... rj/ak/rj/sal