(Sharecast News) - Defence group Cobham on Monday said its £2.57bn offer for UK-based rival Ultra Electronics had been agreed.
Cobham is offering £35 a share and "legally binding and enforceable commitments" to the UK government on national security matters.
Dorset-based Cobham, known for its pioneering air-to-air refuelling technology, was bought last year by US private equity firm Advent International. Its American ownership has raised national security concerns in Britain.
Both Cobham and Ultra have respective technologies used in the US F-35 and Eurofighter Typhoon jets.
Cobham said it will safeguard and support the UK's national security and create new manufacturing and engineering jobs and apprenticeships. It will also protect existing jobs, maintain a UK headquarters and boost investment. It also pledged to engage with the British government to agree details of its binding commitments - including their duration and form.
"Cobham recognises the specific importance of Ultra's contribution to the UK's economy and national security," Cobham and Ultra said in a joint statement.
The deal will help Cobham tap the maritime defence market, where Ultra sells sensors and torpedo and radar systems, mainly to Western customers. Ultra also makes a range of defence communication equipment and forensics software.
20 Aug 2020 16:03