Qinetiq to buy Dominion Technology Resources, provider of services to US intelligence
05 Aug 2008
Qinetiq Plc, the UK's largest defence research company, will buy Dominion Technology Resources Inc. (DTRI), a provider of services to the US intelligence community, for $104.5 million as part of its expansion plans in North America. The transaction will be a cash-based one with London-based QinetiQ buying all the stock of privately held Dominion.
Acquisition of the Reston, Virginia-based company is contingent on US regulatory clearance, the company said in a statement.
''DTRI brings new customer relationships from within the U.S. intelligence community and provides us with further growth opportunities within the broader North American market,'' Qinetiq chief executive officer Graham Love said in the statement.
Qinetiq products include bomb-disposal robots and security scanners.
The UK government had divested its ownership in Qinetiq in a controversial decision, yet remains its largest stockholder with almost 19 per cent of the outstanding shares, according to available data.
Qinetiq shares rose 3.1 per cent to 206.5 pence in London trading yesterday, giving the company a market value of 1.3 billion pounds sterling ($2.6 billion).
