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LONDON (Alliance News) - QinetiQ PLC said Monday it will acquire a majority stake in military training and mission systems firm Inzpire Group Ltd ahead of buying the whole firm in two years time.
The FTSE 250-listed defence engineer has agreed to buy an initial 85% stake in Inzpire in a strategic investment. The deal also will allow QinetiQ to purchase the remaining 15% stake after two years.
The total consideration for the acquisition will be GBP23.5 million.
For the year ended August, Inzpire generated GBP2.0 million in earnings before interest, taxes, depreciation and amortisation on revenue of GBP13.3 million. For the year ended March, Qinetiq generated GBP172.9 million Ebitda on revenue of GBP833.0 million.
"Over the past 13 years, Inzpire has become one of the most trusted names in UK defence," QinetiQ Chief Executive Officer Steve Wadey said. "Being deeply embedded with their customers, Inzpire provides training and services that are critical to maintaining and building defence capability."
"Our investment enhances our overall offer in defence operational training and mission systems, both in the UK and internationally," Wadey added. "Defence operational training represents an area of significant growth as customers around the world increasingly recognise the need to enhance their training capabilities cost effectively. The combination of Inzpire and QinetiQ's capabilities, complemented by our previous acquisitions, creates a leading provider of critical defence training."
Shares in QinetiQ were up 0.4% at 278.00 pence on Monday.
