V2X to acquire QinetiQ's US data, services business
Gettyimages.com / Yuichiro Chino
By
Ross Wilkers
This 70-employee unit provides data engineering, intelligence mission support and cyber solutions to national security agencies.
V2X has agreed to acquire a data and cybersecurity solutions business unit from QinetiQ Group in a move to further extend across the U.S. intelligence community.
In a regulatory filing Tuesday, QinetiQ said it expects to complete the sale of its U.S. federal IT services unit before the end of September.
V2X did not name the unit being acquired in its Monday announcement, but said the transaction is valued at around $24 million net of estimated tax benefits
Reston, Virginia-headquartered V2X is adding roughly 70 employees that provide data engineering, intelligence mission support and cyber solutions to national security agencies. These employees will be integrated into V2X’s national security portfolio over the coming months.
For V2X, this represents its first purchase since the mid-2022 merger that created the company and comes amid a period of optimization after the integration work wrapped up.
"This acquisition marks an important milestone in V2X's evolution, adding complementary capabilities, opening doors to new customers, and delivering solutions that accelerate our growth strategy,” V2X’s chief executive Jeremy Wensinger said in a release.
As Wensinger told us last summer, V2X is well into the optimization phase of its strategy after a long process to bring two companies together post-merger.
QinetiQ is undertaking this sale as part of a larger restructuring program for its U.S. subsidiary that was announced in May. Operations in the U.S. represented approximately 18% of QinetiQ's global revenue mix for its most recent fiscal year ended March 31.
"This disposal also reinforces the clear focus of our renewed US growth strategy on four core market segments, where we see increasing demand and have differentiated capability; maritime systems, advanced sensors, space and missile defence mission support and persistent surveillance," QinetiQ said in its filing on the divestiture. "Each of these market segments has good long-term growth potential and together represent the majority of our revenue in the US."