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The company has closed a deal to acquire cyber security consultancy firm, Avantus.
QinetiQ has announced it has completed the acquisition of Avantus Federal LLC — a provider of cyber, data analytics and software development services to the US Department of Defense, Intelligence Community, Department of Homeland Security and other federal civilian agencies.
The deal aims to support QinetiQ’s growth ambitions across the defence and security market, with the acquisition described as a “strong strategic fit”, with Avantus “directly aligned” with QinetiQ’s core offerings.
“I am delighted that we have completed the acquisition of Avantus today — 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,” Steve Wadey, group chief executive officer of QinetiQ, said.
“This acquisition extends our customer base, strengthens our capabilities, and builds scale in the largest defence and security market in the world.
“With a strong track record of 10 per cent plus 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.”
Shawn Purvis, president and chief executive officer of QinetiQ US, welcomed Avantus to the group, lauding the company’s “elite talent, differentiated technology solutions, and dedication to mission”.
“I am honoured to lead a combined team that shares a focus on performance and a proven ability to be agile in impactful delivery at the speed of our customers’ missions,” he said.
The deal was secured with a payment of US$590 million (AU$875 million) — financed through cash and term loans; interest rate and FX were hedged at the point of announcement.
Avantus is tipped to contribute approximately US$110 million (AU$163 million) in revenue to QinetiQ’s 2023 financial year results.
The announcement comes just days after QinetiQ UK was awarded a £31 million (AU$55.5 million) contract to deliver specialised engineering support for the Future Combat Air Systems (FCAS) program.
As part of the three-year deal, the QinetiQ-led Aurora Engineering Delivery Partnership (EDP) has been tasked with providing technical support to FCAS and the Defence Equipment & Support (DE&S) Catalyst delivery team — responsible for delivering the latest combat air capabilities to UK frontline commands.
EDP partners Atkins and BMT have also been tasked with supporting the program, along with a number of subcontractors in the EDP provider network.
[Related: QinetiQ UK wins RAF contract ]
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