British defense technology company QinetiQ Group PLC said Tuesday it will sell the data and digital subsidiaries of its Federal IT Services business to Virginia-based V2X Inc. for $31 million in cash, a move aimed at sharpening its U.S. market focus and fueling its share buyback program.
The sale, expected to close by the end of September, will also help QinetiQ trim debt as it doubles down on four “core” U.S. sectors: maritime systems, advanced sensors, space and missile defense mission support, and persistent surveillance.
“This disposal reinforces our renewed U.S. growth strategy, targeting high-demand areas where we hold a differentiated edge,” QinetiQ said in a statement, adding that these segments hold long-term growth potential and contribute the lion’s share of its U.S. revenue.
Strategic Divestment, Strategic Gains
QinetiQ, listed on London’s FTSE 250, has been bolstering its U.S. defense footprint. In a July trading update, the company cited “good” order flow in the region, including a $41 million U.S. Army contract to track advanced drones and a $49.9 million IDIQ agreement for battlefield vehicle sensor data collection.
Counsel information for both QinetiQ and V2X has not yet been disclosed.
