Notice

Proposed acquisition of Ultra Electronics Holdings plc by Cobham Ultra Acquisitions Limited: deed of covenant

Notice relating to the proposed acquisition of Ultra Electronics Holdings plc by Cobham Ultra Acquisitions Limited.

From:
Cabinet Office and Department for Business, Energy & Industrial Strategy
Published
6 July 2022

Documents

Proposed acquisition of Ultra Electronics Holdings plc by Cobham Ultra Acquisitions Limited: deed of covenant and undertaking

PDF, 373 KB, 13 pages

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Details

Separate to the public interest intervention and the undertakings offered to mitigate national security concerns, the government has accepted legally binding economic commitments offered by Cobham Ultra Acquisitions Limited to protect the future of Ultra Electronics Holdings plc in the UK. These economic commitments will secure the future of Ultra and the important role it plays in the UK’s world-leading defence sector.

The parties have made undertakings as follows:

  • maintain a corporate headquarters of the Ultra Group in the UK
  • increase engineering R&D expenditure by at least 20% by the end of 3 years
  • continue in good faith with Ultra’s proposal to establish a centre of excellence for cyber capabilities in Maidenhead
  • by the end of the 3-year period, increase the number of UK-based engineering R&D full time employees (FTEs) by at least 15%
  • by the end of the 3-year period, increase the number of UK-based manufacturing FTEs by at least 10%
  • maintain the aggregate number of UK-based engineering and manufacturing FTEs above a baseline level, equivalent to the number of associated FTEs at deal close minus any headcount changes associated with Ultra’s existing transformation programme
  • establish a scholarship fund of up to £5,000,000 to support over 100 university undergraduates from under-represented backgrounds in the UK to pursue degrees in engineering and related disciplines
  • by the end of the 3-year period at least double the number of apprentices employed by Ultra

In addition, by the end of the 3-year period, Cobham commits to establishing programmes intended to:

  • promote the objective of reducing Ultra’s greenhouse gas emissions to net zero by 2050
  • promote the objective of increasing the levels of diversity in the UK workforce of the Ultra Group
Published 6 July 2022