Cohort is pleased to announce that it has acquired a majority stake in Chess Technologies Limited (“Chess”), a UK-based world leader in integrated fire control and tracking systems for military vehicles and naval ships, for an initial cash consideration of £20.1 million.
Chess shares complementary customers with Cohort subsidiaries SEA, EID and MCL. The acquisition also represents Cohort’s first foothold in US defence and provides opportunities to leverage complementary expertise and capabilities.
Chess’s management has been retained and is fully aligned with Cohort’s growth strategy through retention of a significant 18.16% stake in the business.
Andrew Thomis, Chief Executive Officer of Cohort, said: “The acquisition of Chess represents a significant expansion for Cohort, adding a profitable and growing fifth standalone business to our portfolio. It is highly complementary to our core capabilities in defence and security, underpinned by long term contracts with quality global customers and a strong order pipeline, including on long term programmes. We believe Chess has great potential and a clear and sustainable competitive advantage, and we are excited about the opportunities that the business can generate as part of the Cohort Group.
“Overall, the acquisition strengthens and broadens the Group’s portfolio and is expected to be immediately earnings enhancing. We are looking forward to working with the Chess team to realise the exciting growth opportunities that this transaction will create.”