QinetiQ buys Meggitt Target Systems for £57.5m
Car and aeroplane parts maker Meggitt has sold its defence target systems business to QinetiQ for £57.5 million to focus on key sectors.
QinetiQ, which has its headquarters in Farnborough, Hampshire, said it will add Meggitt Target Systems to its new international division.
Meggitt Target Systems provides unmanned aerial, naval and land-based target systems and services for test and evaluation and operational training and rehearsal.
It provides target systems to 40 countries from bases in Britain and Canada and makes around 90% of its revenues outside of the UK.
QinetiQ said the deal will boost its international growth, while it expects the division to deliver earnings of around £5.5 million on revenues of £28 million this year.
Last year it made underlying earnings of £4.9 million on revenues of £26.1 million.
QinetiQ added that the business "meets increasing global demand for high-fidelity threat representation to validate defence and security capabilities against current and future threats".
Steve Wadey, chief executive of QinetiQ, said: "This acquisition accelerates the delivery of our strategic priorities to drive growth of our core capabilities in international markets, and to modernise and strengthen our ability to deliver world-class test and evaluation services."
Meggitt said the sale will allow it to "focus on businesses of scale in attractive markets".
Dorset-based Meggitt has also agreed to pay £10.2 million from the sale into the company's pension plan to help plug the scheme's funding gap.