QinetiQ Group’s U.S. arm has agreed to buy Avantus Federal from NewSpring Holdings for approximately $590 million to expand its U.S. footprint and establish a growth platform to address the defense and intelligence challenges facing government clients.
QinetiQ US said Friday it expects the acquisition to close by the end of calendar year 2022, pending regulatory approvals and other customary closing conditions.
“This acquisition is a transformational platform that delivers on our growth strategy of building a disruptive mid-tier defense and intelligence company,” said Shawn Purvis, president and CEO of Qinetic US and a 2022 Wash100 Award recipient.
QinetiQ US said the transaction will expand its capabilities in national security, cyber, mission services and information platforms; broaden its client portfolio within the Department of Defense, homeland and national security and federal civilian agencies; and build up its workforce particularly in program management, technical, advisory and data analysis skills.
The company will use new debt facilities and existing cash to fund the acquisition and expects the transaction to be immediately earnings accretive with double-digit earnings per share growth by the end of the first full year following the deal’s completion.
Guggenheim Securities acted as exclusive financial adviser to Avantus and NewSpring Holdings, and Baker Tilly offered financial due diligence expertise. Blank Rome and Kirkland & Ellis served as Avantus’ counsel in the transaction.
Citizens and Gleacher Shacklock served as joint QinetiQ’s lead financial advisers and Baker McKenzie acted as the company’s counsel.