WIMBORNE'S aerospace and defence group Cobham plc has increased its transatlantic presence with the acquisition of US-based intelligence and surveillance company GMS Inc.

Cobham has reached an agreement to acquire the trade and net assets of GMS from The Allied Defense Group, Inc for a cash consideration of $26 million on a debt and cash free basis, payable on completion.

The acquisition of GMS is expected to complete before the end of 2008 subject to customary closing conditions and approval from the Committee on Foreign Investment in the United States.

This will be the fifth US acquisition which the FTSE 1000 company has made this year and brings its total spending to over $1 billion. On news of the addition to Cobham's portfolio its shares rose 2.75p to 222.5p.

GMS, which employs 50 people, is based in Carlsbad, California, and will become part of the Cobham Avionics and Surveillance Division. It designs and manufactures digital equipment which is used in a variety of applications and is sold primarily into US law enforcement and national security and defence markets, together with the broadcast market.

GMS products include video surveillance systems and high definition wireless video technologies suitable for both standard law enforcement and mission critical communications applications. Its defence related products have applications on un-manned aerial and ground vehicles.

Among its applications is an installation on the South Korean presidential Sikorsky UH-60 "Blackhawk" helicopter providing a high quality, live video feed (bird's eye view) for the security staff on the ground.

Cobham executives say that GMS is an excellent technological fit with their existing business, offering complementary products and capabilities which presents opportunities for synergistic growth. Following its previously stated aim, the purchase gives Cobham access to a wider customer base and creates a physical presence on the west coast of the USA for its intelligence and surveillance business.