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.

V2X Eyes Broader Horizons

For V2X, a rising force in aerospace and defense, the acquisition represents a bold step into non-traditional defense markets and a chance to tap into the $73.4 billion National Intelligence Program budget.

“This acquisition marks an important milestone in V2X’s evolution—adding complementary capabilities, opening new customer channels, and accelerating our growth strategy,” said Jeremy C. Wensinger, V2X’s president and CEO.

Earlier this month, the U.S. Air Force awarded $4 billion in contracts to a V2X subsidiary in Mississippi and to Lockheed Martin Corp., covering training aircraft support and missile production expansion.

Looking Ahead

With the deal’s completion in sight, QinetiQ will have shed what it calls a “non-core asset” while positioning itself for more aggressive plays in high-growth U.S. defense markets. V2X, meanwhile, stands to widen its operational reach well beyond its traditional boundaries.

Neither company offered further comment on Tuesday.