Defence systems and training company Cohort (CHRT) is selling its space division to French heavyweight Thales for up to £6.5m. It's a smart move that gets the small, loss-making space division off the books and increases an already sizeable war-chest for acquisitions.
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Broker Investec Securities now expects Cohort will end the year to April 2015 with net cash of £27.2m. That's enough for the Ministry of Defence (MoD) supplier to buy attractive assets in core areas like intelligence, submarines, and other electronic systems. The sale comes just weeks after Cohort won £6m of new contracts; half from a new MoD training deal and the rest from contracts in the Middle East and Far East.