QinetiQ announced on Wednesday that the company has entered into an agreement to acquire Manufacturing Techniques on a cash-free, debt-free basis for $105M to be paid in cash on completion. The transaction will more than double the size of QinetiQ's U.S. operations.
“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 defense and security market in the world,“ said Steve Wadey, CEO at QinetiQ.
MTEQ is a leading US provider of advanced sensing solutions with a strong reputation for mission-led innovation, rapidly developing and fielding operationally relevant solutions to deliver information advantage to the warfighter. In the last 12 months, MTEQ generated $167.4M in revenue, $11.4M of EBITDA and $11.0M of EBITA on an unaudited basis.
In addition, MTEQ has a strong track record and growth potential in an expanding sensors market. The transaction will deliver next-generation sensor solutions that are in increasing demand, drive a customer-centric approach to innovate and field new capabilities, improve profitability, win longer-term programs and deepen QinetiQ's relationship with the U.S. Army.
“MTEQ represents how the C5ISR market is evolving and how the DoD is changing its approach to capability development – bringing modular solutions that incorporate best-of-breed solutions, shortening the time from R&D to operational use in the field,“ said John Song, managing director with Baird. “You're seeing government reorganize to incorporate this philosophy as evidenced by the standing up new, agile organizations like the Army Futures Command.“
QinetiQ is a leading science and engineering company operating primarily in the defence, security and aerospace markets. We work in partnership with our customers to solve real world problems through innovative solutions delivering operational and competitive advantage.
Manufacturing Techniques Inc. (MTEQ) is a privately-owned business employing around 360 people who provide innovative technical solutions for the US DoD, Law Enforcement, Intelligence Community and Commercial Customers. The business offers capability across the full cycle of sensor solutions development and use, including design, development, integration, low-volume production, deployment and analytics.