5th Aug 2022 19:44
(Alliance News) - QinetiQ Group PLC said Friday it has agreed to acquire Avantus Federal LLC, a cyber, data analytics and software development services provider to US Federal agencies, for an enterprise value of USD590 million.
The Hampshire-based science and engineering company will be acquiring Avantus from NewSpring Holdings.
The acquisition is expected to generate a tax benefit of USD70 million, and strengthen QinetiQ's capabilities in information solutions, mission services and national security.
The acquisition is expected to be immediately earnings accretive, with double digit growth in earnings per share by the end of its first full year after completion.
The deal is conditional on regulatory clearances in the US, and is expected to be completed by the end of 2022.
"This acquisition is an important step in the execution of QinetiQ's five-year ambitions to expand our presence in the US, the largest security and defence market in the world. Avantus significantly enhances our US offering and provides a strong platform from which to further grow our US operations. Avantus has a track record of high growth at attractive margins and is well-positioned across priority areas for key defence and intelligence customers in the US. We have a high confidence plan to integrate Avantus in order to deliver our global growth strategy," said Chief Executive Officer Steve Wadey.
Shares in QinetiQ closed 0.6% lower at 373.42 pence on Friday in London.
By Dayo Laniyan; [email protected]
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