V2X has agreed to acquire QinetiQ Group’s U.S. federal IT services business as part of efforts to expand its presence in the U.S. intelligence community and national security space.
British defense technology company QinetiQ said Tuesday the transaction has an enterprise value of $31 million and is expected to conclude before the end of September.
The federal IT business consists of data and cyber services.
According to QinetiQ, the deal is part of its U.S. restructuring program and demonstrates the execution of its strategy and capital allocation policy. The company will use the proceeds from the transaction to reduce its net debt and support its buyback program.
QinetiQ’s Focus on Maritime Systems, Advanced Sensors & 2 Other Market Segments
QinetiQ said the divestment reinforces its U.S. growth strategy focused on four core market segments: maritime systems, advanced sensors, space and missile defense mission support and persistent surveillance.
According to the company, each market segment has growth potential over the long term. When combined, the segments represent the majority of QinetiQ’s revenue in the U.S.
Advancing V2X’s Position in National Security Space Through Acquisition
In its Monday announcement, Reston, Virginia-based V2X did not disclose the name of the business being acquired but said the unit will be integrated into its national security portfolio in the coming months.
Through the transaction, V2X said it will absorb approximately 70 employees that provide data engineering, cyber solutions and intelligence mission support to national security agencies.
The acquisition advances V2X’s strategic growth objectives and expands its capabilities to support mission-critical operations in the cyber domain. V2X said the deal is valued at about $24 million net of estimated tax benefits.
