UK science and technology group Qinetiq has completed its first acquisition since it was partially privatised in 2003 and has confirmed plans to target US companies in the next few months.
Qinetiq paid an initial £9.2 million ($17 million) for HVR Consulting Services, a UK-based defence consulting business employing 95 people. HVR will remain a separate company, with two Qinetiq managers on the board. A further £3.8 million could be paid depending on HVR's financial performance.
"HVR meets our firm criteria for UKacquisitions," says Qinetiq managing director, integrated services, Mike Goodfellow. "It is profitable and successful in its own right, has a strong management team and complementary technical skills."
The company confirms recent comments by chief executive Sir John Chisholm that it is looking at acquiring US companies in the $100-200 million bracket and that it would finance all such deals out of its own pocket. Qinetiq's annual results for 2003-4 reveal a 28% rise in profits, to £56.7 million, on turnover of £795.4 million.
HVR was formed in 1983 and has carved a niche in the provision of project engineering and support, cost analysis and risk assessment. It also offers specialist software and comprehensive training for defence personnel.
Qinetiq will not confirm if it is looking at civil or military acquisitions in the USA. It is involved in the US Joint Strike Fighter programme and has an increasing presence in commercial aircraft and airport security.
In July Qinetiq won a three-and-a-half-year contract to act as the synthetic environment integrator for the UKMinistry of Defence's ground-based air-defence system integrated project team. At the Farnborough air show the company demonstrated an advanced 3D virtual design system
JULIAN MOXON / LONDON
Source: Flight International
