This acquisition positions QinetiQ North America well in cyber-intelligence in both the U.S. and International markets. It is in line with QinetiQ North America's strategic focus on key high-value, high-growth segments of the U.S. defense and security market.
Under the terms of the deal, QinetiQ North America will acquire 100 percent of Cyveillance, Inc. in an all cash transaction. There will be potential further consideration depending on the company's financial performance during the two-year period ending December 31, 2010. The acquisition is expected to close in June 2009 following receipt of regulatory approvals.
Cyveillance, Inc. is a venture-capital backed company based in Arlington, Virginia, and is in business to ensure the success of risk-management professionals in securing their enterprises against the growing number of threats found on the Internet. Cyveillance's family of cyber-intelligence solutions delivers the timely, reliable, relevant and actionable information required to proactively manage Internet-based risks. It provides a unique integrated offering to customers who rely on the web for their trading activities.
The acquisition represents a continuing execution of QinetiQ North America's strategy to grow its business and supports its focus on key national security markets, specifically in the emerging and growing multibillion dollar cyber security marketplace.
Cyveillance provides integrated cyber security solutions to a range of high profile commercial customers on multi-year subscription fee contracts that give good visibility of future earnings. The acquisition also offers opportunities to roll out Cyveillance's solutions to QinetiQ North America's existing customer base that includes government agencies in the U.S. and worldwide.
Commenting on the acquisition, Duane Andrews, QinetiQ North America CEO said, "Cyveillance's position in online monitoring technology builds on our existing capability in the growing cyber security market. It complements our portfolio in security and intelligence solutions and services and provides the potential to further leverage QinetiQ North America contracts in open source intelligence and technology protection. We believe Cyveillance is well positioned to benefit from the increased importance that the administration is placing on addressing cyber security as the risk of new and increasingly sophisticated online threats increases."
About QinetiQ NorthAmerica
QinetiQ (pronounced "kinetic") North America delivers world-class technology and responsive solutions to government agencies and commercial customers for many of their most urgent and complex challenges. QinetiQ North America is an independent, innovative technology provider that earns over a billion dollars in revenue operating with small company speed and agility while leveraging significant global resources. More than 6,400 QinetiQ North America engineers, scientists and other professionals have the mission knowledge and proven, reliable performance to meet the rapidly changing demands of national defense, homeland security and information assurance customers. QinetiQ North America is part of QinetiQ Group PLC, one of the world's leading defense and security technology companies. For more information, please visit www.QinetiQ-NA.com.