Intelligence deal

Global defence group, Cobham, has reached an agreement to acquire privately-owned US National Security company, Argotek, for a total consideration of $36.25m.

The deal is expected to be complete in the first half of this year, subject to approval from the Committee on Foreign Investment in the US.

The payment process will involve $26.25m payable in cash and a seller’s note of $10m, which will be payable on the first, second and third anniversary of the deal’s completion.

Argotek currently has a 70-strong workforce who are involved in high-end information assurance services for the US intelligence industry.

According to Cobham, the acquisition of Argotek will fit in well with the group’s existing National Security Systems sector (formerly SPARTA) by increasing technical expertise and expanding its customer base.

Allan Cook, Cobham chief executive, said: ‘The acquisition of Argotek adds further depth to our information assurance capabilities and builds on the successful acquisition of SPARTA in 2008.