WASHINGTON — The U.S. arm of British defense technology company QinetiQ struck a deal to acquire software provider Avantus Federal from NewSpring Holdings for $590 million.
“This acquisition is an important step in the execution of QinetiQ’s five-year ambitions to expand our presence in the US, the largest security and defence market in the world,” the company’s CEO, Steve Wadey, said in a statement Aug. 5.
The deal would double QinetiQ’s U.S. business, according to the release, and is to be completed by the end of this year, subject to regulatory approvals. A combination of existing cash and new debt facilities are expected to finance the acquisition.
QinetiQ was the 64th largest defense firm in 2021, per Defense News’ Top 100 list, which ranks companies according to defense revenue. Its total revenue for the fiscal year that ended March 31, 2022, was about £1.32 billion, or $1.8 billion, per the list. According to the company, its revenue has grown for the last five years.
Avantus, which was not on the list, brought in $298 million in total revenue in the fiscal year that ended June 30, 2022, and its revenue has grown by double-digit rates over the last three years, according to the release.
Founded in 2016 and based in McLean, Virginia, Avantus provides data and cyber services to the departments of Defense and Homeland Security, among other American military and government entities. QinetiQ also provides products and services to the U.S. government.
Irene Loewenson is a staff reporter for Marine Corps Times. She joined Military Times as an editorial fellow in August 2022. She is a graduate of Williams College, where she was the editor-in-chief of the student newspaper.