QinetiQ signs deal for Analex

QinetiQ North American LLC, the U.S. subsidiary of the British defense company, flexed its acquisition muscle over the weekend, signing a deal to buy Analex Corp., a Fairfax, Va.-based systems integrator and professional services company.

QinetiQ, which also owns U.S.-based government contractors such as Apogen Technologies Inc., Westar Aerospace and Defense Group, Planning Systems Inc. and Foster-Miller Inc., is paying $3.70 per share for Analex. The total value of the deal is between $170 million and $180 million.

The share price is nearly double the $1.88 per share at which Analex was trading on Friday. The deal was announced Saturday, and Analex's stock shot up to $3.60 this morning. The investment bank BB&T Capital Markets/The Windsor Group represented Analex in the transaction. Raymond James & Associates Inc. also provided a fairness opinion.

The acquisition will close after undergoing regulatory review. Analex will become a wholly owned subsidiary of QinetiQ North America.

"Analex promises to be an excellent addition to the QinetiQ North America business profile, providing important new customer relationships within the security agencies, the Department of Defense and NASA as well as broadening our existing service offerings," Duane Andrews, QinetiQ North America's CEO, said in a news release.

Analex has about 1,100 employees and 2006 revenues of $149 million. Major customers include the Navy, the Army, defense agencies, NASA and the Health and Human Services Department.