UK-based defence and security contractor QinetiQ Group has entered into an agreement to acquire Manufacturing Techniques (MTEQ) for $125m on a debt-free, cash-free basis, with $105m payable at close in cash and up to $20m in a three-year, earn-out paid in cash and QinetiQ shares.

MTEQ is a US-based company specialising in the design, development and manufacture of integrated, portable and fixed sensor systems. The acquisition will more than double the size of QinetiQ's US operations, according to the company.

QinetiQ CEO Steve Wadey said: “The acquisition of MTEQ is a significant step towards achieving our ambition to build an integrated global defence and security company, more than doubling the size of our operations in the largest defence and security market in the world.”

“MTEQ is a growing business that is thriving because of its ability to apply state-of-the-art sensing technology to enhance information and intelligence that are so critical to modern warfare. I am excited that MTEQ will be joining QinetiQ as its core proposition of rapidly creating new and disruptive capabilities to respond to emerging threats is so well aligned to our own. I look forward to welcoming MTEQ expert employees and high quality leadership team to QinetiQ.”

MTEQ president and CEO Mary Williams said: “We are excited to be joining QinetiQ, a company renowned for its technical expertise. The combined businesses will have a leading position in technologies that are critical to next generation warfighting capabilities, enabling us to offer solutions to evermore complex and challenging customer requirements. Most importantly for me, QinetiQ and MTEQ share a common philosophy of partnership and collaboration with our customers, which will continue to be the foundation for our future success.”

The transaction is subject to regulatory and legal approvals and is expected to close in the second half of QinetiQ’s financial year 2020.

Defence and manufacturing company ASDAM has agreed to acquire Levett Engineering, a supplier of precision components and assemblies for the defence and commercial aerospace industries. Both companies  are based in Australia. ASDAM is the portfolio company of a private equity firm CPE Capital, which also acquired engineering solutions provider Marand Precision Engineering earlier this year.

Cadence Aerospace, a portfolio company of Arlington Capital Partners, has acquired the origianl equipment manufacturing (OEM) division of  B&E Group, which manufactures components used in commercial aerospace, military and space applications. The financial terms were not disclosed. Both companies are based in the US.

Australia-based space and defence technology company Electro Optic Systems has acquired a 100% stake in EM Solutions, a provider of satellite communication systems for the Australian defence force. Electro Optic Systems has acquired 100% of all issued shares in EM Solutions in exchange for 4,271,357 Electro Optic Systems ordinary shares and a cash payment of AU$1.485m ($1m).

Carlisle Companies, a US-based manufacturer of construction materials and industrial products, has submitted an irrevocable and binding offer and entered into exclusive discussions to acquire 100% of the shares of Draka Fileca, a France-based manufacturer of electronic cables, from Prysmian, for a consideration of €73m ($80.5m). Subject to regulatory approvals, the deal is expected to close in Q1 2020.

Modular Driven Technologies (MDT), a Canadian manufacturer of chassis systems for precision shooting, has acquired the designs, tooling and patents of the precision rifle chassis system made by US-based manufacturer J Allen Enterprises. MDT will begin the transition of its chassis production in late 2019.