QinetiQ to acquire OSEC

QinetiQ subsidiary Apogen Technologies has announced that it has signed an agreement to acquire San Diego-based Ocean Systems Engineering Corp (OSEC) for $53 million in cash. OSEC is a provider of research, design, development, and integration of advanced information technology systems to key defence agencies.

The acquisition is expected to close by the end of June 2006, pending US government approvals. OSEC is currently owned by its founder and majority shareholder, managers and staff.

Founded in 1990, OSEC provides software and engineering services to several US Department of Defense (DoD) customers including the Marine Corps Systems Command, with which it has a 10-year relationship, and the Space and NavalWarfareCenter which has been a customer since 1990.

OSEC reported revenues of $48.2m, EBITDA of $4.8m and earnings of $2.7m in 2005. Upon regulatory approval, OSEC will become a wholly-owned subsidiary of Apogen Technologies.