QinetiQ North America will acquire Cyveillance

QinetiQ North America has signed an agreement to acquire Cyveillance Inc., a provider of technology that helps companies protect their operations in cyberspace.

Under the terms of the deal, QinetiQ North America will acquire 100 percent of Cyveillance in an all-cash transaction the details of which have not been publicly announced. There could be further fiscal consideration depending on the company’s financial performance during the two-year period ending Dec. 31, 2010.

Cyveillance is a venture capital-backed company in Arlington, Va., that seeks to ensure the success of risk-management professionals in securing their enterprises against the growing number of Internet threats, QinetiQ officials said.

The company’s family of cyber-intelligence solutions delivers the timely, reliable, relevant and actionable information required to manage Internet-based risks, they said.

The acquisition advances QinetiQ North America’s position in the growing multibillion-dollar cybersecurity and cyber-intelligence marketplaces in the U.S. and abroad, the officials said. The purchase is in line with QinetiQ North America’s strategic focus on certain high-value, high-growth segments of the U.S. defense and security market, they added.

The acquisition also offers opportunities to sell Cyveillance’s solutions to QinetiQ North America’s existing customer base, which includes government agencies worldwide.

“Cyveillance’s position in online monitoring technology builds on our existing capability in the growing cybersecurity market,” said Duane Andrews, QinetiQ North America’s chief executive officer, in a statement announcing the acquisition. “It complements our portfolio in security and intelligence solutions and services.”

“We believe Cyveillance is well positioned to benefit from the increased importance that the administration is placing on addressing cybersecurity as the risk of new and increasingly sophisticated online threats increases,” he added.

The acquisition is expected to close in June 2009 after the company gets the necessary regulatory approvals.

QinetiQ North America, of McLean, Va., is a subsidiary of British defense company QinetiQ Group PLC and ranks No. 24 on Washington Technology’s 2008 Top 100 list of the largest federal government prime contractors.