QinetiQ acquires Meggitt Target Systems
QinetiQ announced this morning that it has acquired Meggitt Defence Systems Limited and Meggitt Holdings Canada Inc. (together 'Meggitt Target Systems') from Meggitt, for £57.5 million on a cash-free, debt-free basis.
Meggitt Target Systems is a leading international provider of unmanned aerial, naval and land-based target systems and services for test and evaluation (T&E) and operational training and rehearsal. The business is expected to generate approximately £28 million of revenue and approximately £5.5m of operating profit in the year to 31 December 2016.
Meggitt Target Systems provides target systems to approximately 40 countries from its operations in the UK and Canada, and performs on-site target services in 15 of those countries. It will form part of QinetiQ’s new International business unit and will be reported within QinetiQ’s Global Products division.
Steve Wadey, QinetiQ CEO, said: “This acquisition accelerates the delivery of our strategic priorities to drive growth of our core capabilities in international markets, and to modernise and strengthen our ability to deliver world-class test and evaluation services.”
“Meggitt Target Systems is a distinctive business with a strong management team and employees in Canada and the UK who are experts in the development and delivery of unmanned target systems and services. We know the business well having worked together for the past decade and I am delighted to welcome the team to QinetiQ.”
QinetiQ is a science and engineering company operating primarily in the defence, security and aerospace markets, whilst Meggitt Target Systems’ core capability is in the provision of unmanned aerial, naval and land-based target systems and associated turnkey services for test and evaluation as well as operational training and rehearsal. Meggitt has a broad range of non-ITAR restricted unmanned targets across multiple domains, including jet and propeller aircraft, rotary wing aircraft, land targets and high speed naval craft. It designs the command, control and avionics systems for its products and is able to provide bespoke integration solutions.
Gleacher Shacklock, Grant Thornton and Osborne Clarke provided advice to QinetiQ on the acquisition of Meggitt Target Systems.