QinetiQ U.S. has entered into a definitive agreement to acquire Avantus Federal from NewSpring Holdings for an enterprise value of $590 million.
Avantus provides mission-focused cyber, data analytics and software development solutions to the Defense Department, intelligence community, Homeland Security Department and other law enforcement and civilian agencies. Its solutions help solve national security customers’ data engineering, cyber and analytics challenges with operational, intelligence and cyber support.
“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 Purvis, president and CEO of QinetiQ U.S. “This acquisition is a transformational platform that delivers on our growth strategy of building a disruptive mid-tier defense and intelligence company.”
Both companies provide technology services, cyber and intelligence solutions, and information services. Together, they will address the complex and large scale intelligence and defense challenges government customers are facing.
“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 CEO 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,” Maner added.
The acquisition will also enhance QinetiQ U.S.’ position in the defense and intelligence market by creating a large full solutions U.S. defense contractor business well-positioned for growth, company officials said.
“We have been thoroughly impressed by the quality of the Avantus employee base, leadership team, customer impact, and the sustained organic growth,” said Steve Wadey, group CEO for QinetiQ Group plc. “We see great alignment in our culture and strategy.”
“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,” he added.
The closing of the acquisition is subject to customary conditions and regulatory approvals, and is expected to be finalized by end of the year.
Guggenheim Securities, LLC served as financial adviser to Avantus and NewSpring Holdings; Baker Tilly provided financial due diligence expertise; and Blank Rome LLP and Kirkland & Ellis LLP served as counsel to Avantus. Citizens and Gleacher Shacklock both served as lead financial advisers and Baker McKenzie served as counsel to QinetiQ.