Cohort has signed an agreement to buy Wärtsilä ELAC Nautik (ELAC), a German supplier of sonar systems for naval surface ships and submarines, from Wärtsilä.
The British defence and security technology company will acquire a 100% interest in ELAC for €11.25m.
The company stated that ELAC is complementary to its SEA business, which supplies products and services to the defence, offshore energy and transport markets.
ELAC will bring technology complementary to SEA’s Krait towed-array sonar.
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The acquisition will also provide penetration in South East Asia and Europe and a strong footprint in Germany.
Cohort CEO Andrew Thomis said: “The acquisition of ELAC is a significant step for Cohort, adding a sixth standalone business to our growing and profitable portfolio.
“It is highly complementary to our core capabilities in defence and security, with a leading position in the attractive and growing submarine and surface sonar markets, strengthening and broadening the group’s existing capabilities in maritime systems.”
Located in Kiel, ELAC is involved in providing hydroacoustic products, including sonar solutions, echo sounders and underwater communication systems for submarines.
ELAC’s sonar systems are in use on naval submarines and surface ships of Indonesia, the Netherlands, Taiwan, Singapore, and Portugal.
The company has annual revenues of around €21m, with 80-90% coming from naval markets.
Cohort stated that the transition is expected to enhance its maritime defence system offering.
Completion of the acquisition is subject to closing conditions and is expected to occur by 30 June 2020.