Hello, Guest.!

QinetiQ US to Add Cyber, Software Capabilities With Avantus Federal Acquisition; Shawn Purvis Quoted

3 mins read

The U.S.-based subsidiary of defense contractor QinetiQ Group has agreed to purchase cyber- and data analytics-focused company Avantus Federal for a reported sum of $590 million.

Together, QinetiQ US and Avantus Federal intend to bolster each organization’s ability to serve government clients and meet the needs of the Department of Defense and the Intelligence Community, QinetiQ said Friday.

“This acquisition is a transformational platform that delivers on our growth strategy of building a disruptive mid-tier defense and intelligence company,” commented Shawn Purvis, CEO and president of QinetiQ.

Purvis, who is a two-time Wash100 Award winner, also predicted that the business combination will result in a “a powerful performance culture and scaled technical differentiation.”

The existing technology, cyber and intelligence capabilities of QinetiQ and Avantus will be compounded in the merger, as will both companies’ extensive order backlogs and networks of relationships in the defense industry.

Individually, QinetiQ’s team specializes in constructing and implementing robotics and autonomous systems, sensing, protection systems and autonomous vehicles. Meanwhile, Avantus offers expertise in data engineering, software development and providing cyber and intelligence support to special operators.

“Avantus’ highly integrated business, core capabilities, and customer relationships complement QinetiQ’s distinctive offerings, allowing us to grow the services and solutions that benefit our combined global customer,” remarked Steve Wadey, CEO of QinetiQ Group.

Wadey also said Avantus’ consistently strong employees, leadership team, dynamics with customers and prolonged periods of growth were most impressive to QinetiQ.

QinetiQ anticipates that adding Avantus to its portfolio will allow it to amplify both organic and inorganic growth in U.S. markets.

The acquisition is expected to close at the end of calendar year 2022, pending subsequent customary conditions such as regulatory approvals. Guggenheim Securities, LLC acted as exclusive financial advisor to Avantus and its parent company, NewSpring Holdings, while Gleacher Shacklock were joint lead financial advisers to QinetiQ.

Blank Rome LLP and Kirkland & Ellis LLP provided Avantus’ legal counsel while Baker McKenzie represented QinetiQ.

In May, QinetiQ Group announced that it intends to focus its strategy for new contract work within the U.S. and Australia in the coming two years. The acquisition of Avantus will likely aid the company in this mission.