23rd Nov 2022 13:02
(Alliance News) - QinetiQ Group PLC on Wednesday said it has completed the acquisition of Avantus Federal LLC for USD590 million, financed through cash and term loans.
The Hampshire-based science and engineering company said Avantus' customer relationships, contract vehicles and technical capabilities are complementary to its existing US business. The combination creates a "strong platform to drive further growth in the US and beyond".
Avantus Federal provides cyber, data analytics and software development solutions to the US Department of Defence, Intelligence Community, Department of Homeland Security and other federal civilian agencies.
Avantus continues to trade in line with expectations. The business is expected to contribute revenue of USD110 million to financial 2023, with "stable" operating profit margins, consistent with the 11% operating profit margin previously guided.
In the longer-term, QinetiQ expects Avantus to deliver at least double-digit revenue growth.
"It is a strategic milestone in our five-year ambition to build an integrated global defence and security company, delivering innovation for our customers' mission. This acquisition extends our customer base, strengthens our capabilities and builds scale in the largest defence and security market in the world," Steve Wadey, QinetiQ group chief executive officer said.
"With a strong track record of over 10% growth at attractive margins, Avantus is a brilliant strategic and cultural fit and positions us to meet the increasing mission-critical needs of our US defence and intelligence customers with agility and pace."
QinetiQ shares were up 0.2% to 349.00 pence at midday on Wednesday in London.
By Jaskeet Briah; [email protected]
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