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On August 5, QinetiQ US, a Lorton, VA-based, wholly owned subsidiary of QinetiQ Group plc and a defense company providing mission-critical solutions in robotics and autonomous systems, sensing, protection systems, and next-generation autonomous vehicles announced that it has entered into a definitive agreement to acquire McLean, VA-based Avantus Federal from NewSpring Holdings for an enterprise value of $590 million.
The combination of QinetiQ US and Avantus will create a powerful growth platform to address the complex and large-scale intelligence and defense challenges government customers face today, the companies said. The closing of the acquisition is subject to customary conditions, including regulatory approvals, and is expected to close by end of calendar year 2022.
Avantus is a leading provider of mission-focused cyber, data analytics, and software development solutions to the Department of Defense, Intelligence Community, Department of Homeland Security, and other law enforcement and civilian agencies. From supporting sensitive national security customers on some of the most complex data engineering, cyber, and analytics problems in the world, to providing key mission operational, intelligence, and cyber support to special operators, and helping accelerate new technologies into the warfighter’s hands, Avantus has a strong track record of achieving speed-to-mission-impact.
“We have been thoroughly impressed by the quality of the Avantus employee base, leadership team, customer impact, and the sustained organic growth. We see great alignment in our culture and strategy,” said Steve Wadey, Group Chief Executive Officer for QinetiQ Group plc. “Avantus’ highly integrated business, core capabilities, and customer relationships complement QinetiQ’s distinctive offerings, allowing us to grow the services and solutions that benefit our combined global customers as their needs evolve at an accelerating pace.”
Both Avantus and QinetiQ are best-in-class providers of technology services and support, cyber and intelligence solutions, and information services. With high-trust, established customer relationships within the most important and enduring mission areas, this acquisition enhances the go-to-market strategy for both companies.
“We believe that the combination of QinetiQ US and Avantus will create a unique business in the US and globally with a powerful performance culture and scaled technical differentiation,” said Shawn N. Purvis, President and Chief Executive Officer of QinetiQ US. “This acquisition is a transformational platform that delivers on our growth strategy of building a disruptive mid-tier defense and intelligence company.”
“Our market is evolving rapidly and demanding more of our customers every day, and joining forces with QinetiQ US will deliver solutions at scale to meet the moment,” said Andy Maner, Chairman and Chief Executive Officer of Avantus. “With a shared culture of absolute customer focus and employee investment and a structure built for agility and speed, this opportunity to combine with QinetiQ US strengthens our defense presence and combined position across our intelligence and homeland, law enforcement, and civilian portfolio, and we are poised to continue our joint mission as an innovator unique to our market.”
The combination with Avantus will materially enhance QinetiQ US’s position in the largest defence and intelligence market in the world by creating a large full solutions US Defense contractor business well-positioned within high growth and durable market areas. Avantus brings a strong order backlog, and the acquisition creates a compelling platform for new scaling organic and inorganic growth for QinetiQ in the US.
Source: QinetiQ US
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