Avantus Federal offers mission-focused cyber, data analytics, and software development solutions to US defence and intelligence departments and others

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US-based Avantus Federal to be acquired by QinetiQ Group. (Credit: Pete Linforth from Pixabay)

QinetiQ Group, a British defence technology company, has signed a deal through its subsidiary QinetiQ Inc. (QinetiQ US) to acquire US-based Avantus Federal from NewSpring for $590m.

Headquartered in Virginia, Avantus Federal provides mission-focused cyber, data analytics, and software development solutions. It is said to cater to the US Department of Defense, Department of Homeland Security, Intelligence Community, and other federal civilian agencies.

For the 12 months to 30 June 2022, the company earned revenues of $298m.

In May 2022, Avantus Federal acquired North Carolina-based Far Ridgeline Engagements, which supports national security missions with operational, training, and technical solutions.

Avantus Federal chairman and CEO Andy Maner said: “Our market is evolving rapidly and demanding more of our customers every day, and joining forces with QinetiQ US will deliver solutions at scale to meet the moment.

“With a shared culture of absolute customer focus and employee investment and a structure built for agility and speed, this opportunity to combine with QinetiQ US strengthens our defense presence and combined position across our intelligence and homeland, law enforcement, and civilian portfolio, and we are poised to continue our joint mission as an innovator unique to our market.”

QinetiQ provides mission-critical solutions in sensing, protection systems, robotics and autonomous systems, and next-generation autonomous vehicles.

The combination of QinetiQ US and Avantus is expected to create a platform for addressing the complex and large-scale challenges that government customers face in intelligence and defense.

According to QinetiQ, the deal bolsters its capabilities in cyber, mission services, information solutions, and national security. It will also grow its customer portfolio in Department of Defense and into Homeland Security, National Security, and Federal Civilian customers, said the company.

QinetiQ Group CEO Steve Wadey said: “This acquisition is an important step in the execution of QinetiQ’s five-year ambitions to expand our presence in the US, the largest security and defence market in the world. Avantus significantly enhances our US offering and provides a strong platform from which to further grow our US operations.

“Avantus has a track record of high growth at attractive margins and is well-positioned across priority areas for key defence and intelligence customers in the US. We have a high confidence plan to integrate Avantus in order to deliver our global growth strategy.”

The deal, which is subject to regulatory approvals and other conditions, is anticipated to close by the end of this year.