QinetiQ to Acquire Manufacturing Techniques for $125m

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.

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