SI completes $165M QinetiQ services deal
The SI Organization has completed its $165 million acquisition of QinetiQ North America’s services and solutions group.
The deal marks a big farewell to the U.S. services market for QinetiQ, which saw its revenue fall in recent years as the U.S. market contracted with the draw-down in Iraq and Afghanistan and simultaneous budget pressures from sequestration and a government shutdown last year.
Because of those market conditions, the British parent QinetiQ Group plc no longer saw the U.S. market as a growth driver, and because of its structure as a foreign-owned company, keeping the U.S. services business had become too expensive.
The company is keeping its product business, which includes Cyveillance, a cybersecurity business, as well as its robotic products and other high-end defense products.
For SI, the deal will be transformative as the company is picking up about 2,800 employees and will have $1.3 billion in annual revenue. It adds capabilities in systems engineering and integration and software solutions, particularly in areas such as cyber, analytics, software development and IT.
“This acquisition culminates a thoughtful process to bring together two great companies, and their employees, to better serve the mission of our customers,” said Mac Curtis, CEO of the SI in a statement.
Posted by Nick Wakeman on May 28, 2014 at 9:25 AM