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Mac Curtis: The SI Org Eyes Adjacent Market Growth Through QinetiQ NA Services Group Buy

Mac Curtis
Mac Curtis

The SI Organization has moved to grow its footprint in fields such as cybersecurity and analytics by agreeing to purchase QinetiQ North America‘s services and solutions group.

The SI expects to close the deal in the second quarter of calendar year 2014 after regulatory approvals have been completed, the company said Tuesday.

Reuters reports the transaction is valued at up to $215 million, including an initial cash sum of $165 million that could increase by $50 million based on the group’s gross profit through March 2015.

Reston, Va.-based QNA/SSG offers cybersecurity, analytics and software development services across the public sector.

Mac Curtis, The SI CEO, said the company aims to grow its presence in adjacent markets such as the defense, homeland security, aerospace and federal civilian segments through the transaction.

Curtis added the transaction is part of The SI’s goal to lead the “design, development, integration and operation of complex, mission-critical information systems across the government.”

In a subsequent announcement, QNA’s British parent company QinetiQ said the sale does not include the Cyveillance subsidiary.

The acquisition will create a business with $1.3 billion in revenue and 4, 800 employees that will work to provide a range of government technology and services to government clients, The SI said.

Washington-based consulting firm The Chertoff Group advised The SI on the transaction.

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