* Cobham agrees to buy Ultra in $3.6 bln deal
* Shareholders to get 35 pounds per share
* Cobham promises to keep jobs, UK HQ
(Adds background, details)
Aug 16 (Reuters) - Defence firm Cobham said on Monday it had
agreed to buy Ultra Electronics in a deal valuing its
UK-listed rival at 2.57 billion pounds ($3.56 billion), setting
out commitments aimed at allaying any potential concerns over
national security.
Shareholders in Ultra, which counts the British and U.S.
governments as customers, will receive 35 pounds a share, in
line with a price offered in July, which Cobham said at the time
had been sweetened from an initial 28 pounds per share bid.
Cobham, which was taken private by U.S. private equity firm
Advent last year, 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.
In order to protect Ultra's businesses and stakeholders,
Cobham said it will engage with the British government to agree
details of its binding commitments - including their duration
and form.
Ultra shares were 4.4% higher at 33 pounds by 0726 GMT.
"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.
Dorset, England-based Cobham, which is known for its
pioneering air-to-air refuelling technology, also said it will
ensure the continuity of supply and critical capabilities in the
UK, an appropriate board composition and national security
clearance arrangements.
The British government, which said it was closely monitoring
the Cobham bid in July, did not immediately respond to a request
for comment on Monday.
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.
Ultra's larger rival, British aerospace and defence group
Meggitt, is also the subject of takeover interest and
has received bids from American companies Parker-Hannifin
and TransDigm.
Parker's bid also included a series of pledges to the
British government on jobs and security.
($1 = 0.7222 pounds)
(Reporting by Muvija M in Bengaluru; Editing by Krishna Chandra
Eluri, Kirsten Donovan)
