Goal Is To Enhances Position In Global Test And Evaluation

QinetiQ has acquired Meggitt Defence Systems Limited and Meggitt Holdings Canada Inc. (together “Meggitt Target Systems”) from Meggitt for £57.5 million (approx. $71 million) on a cash-free, debt-free basis.

Meggitt Target Systems is a leading international provider of unmanned aerial, naval and land-based target systems and services for test and evaluation (“T&E”) and operational training and rehearsal. The business is expected to generate approximately $34.5 million of revenue and approximately $6.8 million of operating profit in the year to 31 December 2016.

Meggitt Target Systems provides target systems to approximately 40 countries from its operations in the UK and Canada, and performs on-site target services in 15 of those countries. It will form part of QinetiQ’s new International business unit and will be reported within QinetiQ’s Global Products division.

Qinetiq cited the following reasons for the acqistion:

• Meggitt Target Systems holds a leading position in the growing global target systems and services market
• Meets increasing global demand for high-fidelity threat representation to validate defence and security capabilities against current and future threats
• Generates 90% of its revenue from outside the UK
• Opens new routes to market to accelerate QinetiQ’s international growth
• Establishes a design and manufacture capability in Canada
• Adds multiple customer relationships in Europe, Asia and North America
• Strengthens QinetiQ’s ability to deliver world-class test and evaluation
• Adds cost effective unmanned aerial, naval and land-based target systems and services
• Accelerates the modernization of T&E services through the integration of threat representation with QinetiQ’s existing capabilities

“This acquisition accelerates the delivery of our strategic priorities to drive growth of our core capabilities in international markets, and to modernize and strengthen our ability to deliver world-class test and evaluation services,” said Steve Wadey, QinetiQ CEO. “Meggitt Target Systems is a distinctive business with a strong management team and employees in Canada and the UK who are experts in the development and delivery of unmanned target systems and services. We know the business well having worked together for the past decade."

(Source: Image provided with QinetiQ news release)

FMI: www.qinetiq.com