Cohort plc, the independent technology group, is pleased to announce that the acquisition of Wärtsilä ELAC Nautik GmbH has now completed.
German government approval for the transaction was granted in November and the other closing conditions were subsequently met. The acquisition, which has a headline price of €11.25m, is being funded from existing cash resources and the Group’s banking facilities. Wärtsilä ELAC Nautik GmbH will be renamed ELAC SONAR GmbH (“ELAC SONAR”).
A market leader in sonar systems technology for naval surface ships and submarines, ELAC SONAR will join the Group as Cohort’s sixth standalone subsidiary. The acquisition will enhance Cohort’s maritime defence system offering, with market leading technology in surface ship and submarine sonars, underwater communication systems and echo sounders. In addition:
- ELAC SONAR shares highly complementary expertise, capabilities and technologies with Cohort Subsidiary SEA, providing a significant cross-selling opportunity.
- ELAC SONAR is focused on defence export markets, with naval markets accounting for 80-90% of revenues, and strong penetration in South East Asia and Europe. The acquisition also adds Germany as a domestic market for the Group.
Background to the acquisition
Founded in 1926, ELAC SONAR is headquartered in Kiel, Germany, employing around 130 permanent staff. It has a locally based, highly experienced operational management team, who will remain in place following the acquisition.
ELAC SONAR has a global customer base, predominantly in Asia and Europe, but with a growing focus in North and South America. Its customers include navies, shipyards, integrators and resellers, with naval markets accounting for 80-90% of revenues whilst 10-20% of revenues are generated from commercial and dual use markets. ELAC SONAR has products currently in operation on various submarines and surface ships, including for the German, Indonesian, Singaporean, Taiwanese, Dutch and Portuguese navies.
ELAC SONAR’s offer comprises highly customised and innovative solutions for its customers, with a business model that focuses on open architecture products that are easy to upgrade and customise. Most supply contracts include services covering installation, consultancy, system integration, acceptance tests, updates, training and spare parts.
Andrew Thomis, Chief Executive Officer of Cohort, said:
“We are delighted to welcome ELAC SONAR to the Group. This is a significant step for Cohort, adding a sixth standalone business to our portfolio. ELAC SONAR brings a leading position in the attractive and growing submarine and surface sonar markets, complementing our existing capabilities and giving the Group an exceptionally wide and capable offering in this important sector.”