V2X Inc. will acquire QinetiQ Group plc’s federal IT services business, which provides data and cyber services to the intelligence community, for $31 million, about 1x revenue. The deal is expected to close by the end of September.
Valued at $24 million net of estimated tax benefits, the acquisition will add about 70 employees and expand V2X’s national security portfolio with specialized data engineering, intelligence mission support and cyber capabilities. The company said it will strengthen its position in the intelligence community and bolster efforts to capture a larger share of the National Intelligence Program budget.
QinetiQ said the sale is part of its U.S. restructuring program and will allow the company to focus on four core U.S. market segments: maritime systems, advanced sensors, space and missile defense mission support, and persistent surveillance. Proceeds will support its share buyback program and reduce net debt.
V2X President and CEO Jeremy C. Wensinger said the acquisition will add about 70 highly skilled professionals, broaden the company’s capabilities, open access to new customers and advance its growth strategy.
“It also demonstrates how we are transforming V2X into a leader in data-enabled mission solutions. Expanding our presence in the Intelligence Community reinforces our commitment to national security, innovation, and delivering greater value to our customers and shareholders,” he added.
V2X said the business will be integrated into its national security portfolio in the coming months.
Macquarie Capital advised the seller.