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QinetiQ Says Its Near End of Business Transformation

QinetiQ said it will simplify its compliance system in order to complete a program restructuring process that began around two years ago, Financial Times reports.

The U.K.-based company said the transformation will decrease its need to consult the British government and removes the authority of Britain’s Ministry of Defence to veto “any (Qinetiq) transaction or activity, ” according to Jennifer Thompson’s report.

The company was formerly a government research arm, but the veto goes “unused” and the government holds no economic stake in the company.

The British government will still be able to interfere in company activity it feels presents a conflict of interest with other defense contractors or “proposes stakebuilding beyond certain levels on the grounds of national security, ” Thompson wrote.

Chief Executive Leo Quinn said the transformation process would take two years and is aimed in part to open up more potential commercial business opportunities.

The company’s restructuring process involves cutting costs and decreasing its pension deficit by changing how it measures contributions.

“As the group continues to transform itself into a competitive commercial business we look forward to working alongside the MoD, our key UK customer, in the next phase of our development, ” Quinn said on Friday, according to the FT.

In the pursuit of efficiencies, Qinetiq has been remodeling itself to more closely resemble other contrators without its historic tie to the government.

In early February, the company appointed John Sutton as general manager and executive vice president of the North American mission and information solutions business unit.

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