24th Apr 2018 08:23
LONDON (Alliance News) - QinetiQ Group PLC on Tuesday said it agreed to buy German-based aerial training provider EIS Aircraft Operations, currently part of EIS Aircraft Group, for EUR70.0 million on a cash-free and debt-free basis.
The defence technology company said EIS Aircraft Operations generated revenue of EUR20.1 million for 2017 and earnings before interest, taxes, depreciation, and amortization of EUR5.4 million.
The acquired company had a fleet of 14 leased aircraft and a team of 20 pilots, QinetiQ said.
QinetiQ said it expects to complete the transaction during the first half of its 2019 financial year, following regulatory and legal approvals. Upon completion, Aircraft Operations will be integrated into QinetiQ's Europe, the Middle East and Africa Services Division as well as led by its existing management team.
The company said it will fund the purchase through its available cash resources.
"EIS Aircraft Operations is a high growth business which provides airborne training at a disruptively low price," said Chief Executive Steve Wadey. "We look forward to welcoming the Aircraft Operations team in Germany to QinetiQ and working with them to continue to grow the business both within their existing markets and beyond."
Shares in QinetiQ were trading 4.1% higher at 234.40 pence per share on Tuesday.
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