QinetiQ has signed agreements to purchase two Australian consulting businesses. Image credit: www.qinetiq.com.

International defence and security technology company, QinetiQ Group plc, announced on 2 January 2008 that it has signed agreements to purchase two Australian defence consulting businesses – Ball Solutions Group Pty Ltd and Novare Services Pty Ltd.

These acquisitions are being acquired for a total cash consideration of A$20 million and are subject to regulatory approval. They represent QinetiQ’s first investment in Australia and provide the company with a presence of 185 staff located in Canberra, Sydney, Melbourne, Brisbane and Adelaide.

Ball Solutions Group is a provider of professional and consulting services, primarily to the Australian Department of Defence, has annual revenues of A$29m and is being acquired from Ball Aerospace & Technologies Corp of Broomfield, Colorado, USA. It operates in three main practice areas: business systems and applications; data acquisition and management; and operations research and analysis.

Novare provides engineering and logistics services to the Australian Department of Defence, its prime contractors and selected commercial partners. It has annual revenues of A$6.1m and is being acquired from its management, who will remain with the company. Novare’s core expertise is in explosive ordnance and weapons, aerospace systems, advanced technical data management and performance-based contracting.

Commenting on the acquisitions Graham Love, Group Chief Executive Officer of QinetiQ, said: “These acquisitions reflect our confidence in the strength of the Australian defence market and will establish QinetiQ as a leading provider of independent advice services within the country. We will also be seeking to leverage synergies between these companies and our businesses in the UK and USA to provide additional benefits to our Australian customers.”

The acquisitions are subject to Australian and US Government regulatory approval and are expected to complete by the end of February 2008, after which the companies will trade as QinetiQ Consulting Pty Ltd.