Britain’s QinetiQ Group plc on Wednesday said its U.S. subsidiary has completed a $590 million acquisition of Avantus Federal in a deal that that more than doubles the size of the U.S. business and expands its presence in the federal market.
Avantus, which is based in Northern Virginia, provides cyber, data analytics and software development solutions to the Departments of Defense and Homeland Security, the intelligence community and other federal agencies.
The deal was first announced on Aug. 5 and since then QinetiQ said that Avantus “has won significant new awards, maintained its high employee retention rate and delivered financial results in line with our expectations.”
QinetiQ expects Avantus to generate $110 million in sales during its fiscal year 2023 that ends in March 2023. Avantus had $298 million in sales for the one-year period that ended June 30, 2022, and has 1,150 employees, 92 percent of which hold security clearances.
QinetiQ Inc., the U.S. subsidiary of QinetiQ Group, had $207 million in sales in FY ’22 and just under 1,000 employees.
The acquisition “is a strategic milestone in our five-year ambition to build an integrated global defense and security company, delivering innovation for our customers’ mission,” Steve Wadley, CEO of QinetiQ Group, said in a statement. “This acquisition extends our customer base, strengthens our capabilities and builds scale in the largest defense and security market in the world. With a strong track record of 10 percent-plus growth at attractive margins, Avantus is a brilliant strategic and cultural fit and positions us to meet the increasing mission critical needs of our U.S. defense and intelligence customers with agility and pace.”
Avantus was a portfolio company of NewSpring Holdings.