QinetiQ announced today that it has signed a purchase agreement with Foster Miller, the Boston-based engineering and technology development company. The £91.8 million deal, which is subject to regulatory approval, represents QinetiQ’s first US acquisition.
“Strategically, the acquisition of Foster-Miller will be key to achieving QinetiQ’s goal of growing our US business significantly,” commented Dr David Anderson, President and CEO of QinetiQ Inc, QinetiQ’s US subsidiary. “A recognised leader in providing innovative engineering solutions in fields such as robotics, advanced materials technology and medical devices, its complementary R&D work and broad range of customers will undoubtedly accelerate QinetiQ’s expansion into the world’s largest market for advanced technologies.”
“In percentage terms, QinetiQ saw its highest levels of growth in the US, generating around $40 million in orders during the last financial year,” added Dr Anderson. “We are therefore very well-positioned to take advantage of the opportunities offered by this strategic acquisition.”
QinetiQ said Foster-Miller had revenues of around £67.6 million and EBITDA of £12.9 million in FY2003/4, and has seen compound growth of around 30 per cent per annum over the last four years. It will maintain its name and premises, and will operate as a subsidiary of QinetiQ North America.
“This is a partnership where the whole really will be greater than the sum of its parts,” said Dr William Ribich, President and CEO of Foster-Miller. “Separately, we are leaders in a number of technologies. Together, we can be world-beating.”