Business
QinetiQ acquisition of MTEQ
QinetiQ acquisition of MTEQ.
About this update from Qinetiq Group Plc
[{"type":"text","content":"\n \nRNS Number : 4257O QinetiQ Group plc 02 October 2019 \n\nNews Release\n \nQinetiQ Group plc\nQinetiQ more than doubles size of US operations with acquisition of MTEQ \n2 October 2019. QinetiQ announces that it has entered into an agreement to acquire Manufacturing Techniques Inc. (MTEQ) on a cash-free, debt-free basis for $105 million to be paid in cash on completion and an earn-out of up to $20 million payable in cash and shares dependent on delivering stretching financial targets over three years.\n \nMTEQ is a leading US provider of advanced sensing solutions with a strong reputation for mission-led innovation, rapidly developing and fielding operationally relevant solutions to deliver information advantage to the warfighter. In the 12 months to 31 August 2019, MTEQ generated $167.4 million of revenue, $11.4 million of EBITDA, and $11.0m of EBITA on an unaudited basis. \n \nMTEQ employs 360 people in Virginia and has strong customer relationships, particularly with the US Army, supporting a number of its modernisation priority programmes. The business develops next generation sensing solutions, including integrating outputs from multiple sensors, to provide information that enables operational advantage in the modern battlespace. MTEQ is renowned for disruptive and agile innovation across the full cycle of sensor solutions development and use, including design, development, integration, low-volume production, deployment and analytics. Following completion, the business will continue to be led by its existing management team.\n \n\n\n\nStrategic rationale\n\n\n\n\n\n\n\n\n\n• MTEQ has a strong track record and further growth potential in an expanding sensors market\n\n\n\n\nᵒ Delivers next-generation sensor solutions, which are in increasing demand to counter emerging threats in the modern battlespace\n\n\n\n\nᵒ Drives a customer-centric approach to rapidly innovate and field new capabilities\n\n\n\n\nᵒ Investing to improve profitability and win longer-term programmes\n\n\n\n\n\n\n\n\n\n• Accelerates our growth in the US, the world's largest defence and security market\n\n\n\n\nᵒ Creates a US operation of c.$300m and c.750 employees, which will deliver solutions critical to next generation warfighting capability through the combination of MTEQ's expertise in advanced senso...