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08 September 04
QinetiQ announces its first US acquisition
QinetiQ, Europe's largest science and technology organisation, announced today that it has signed a purchase agreement with Foster Miller Inc, the Boston-based engineering and technology development company. The £91.8m ($163m) deal, which is subject to regulatory approval, represents QinetiQ's first US acquisition.
"Strategically, the acquisition of Foster-Miller will be key to achieving QinetiQ's goal of growing our US business significantly," comments Dr David Anderson, President and CEO of QinetiQ Inc, QinetiQ's US subsidiary. "Foster-Miller is a remarkable fit with QinetiQ, both technologically and culturally. A recognised leader in providing innovative engineering solutions in fields such as robotics, advanced materials technology and medical devices, its complementary R&D work and broad range of customers will undoubtedly accelerate QinetiQ's expansion into the world's largest market for advanced technologies."
He continues: "In percentage terms, QinetiQ saw its highest levels of growth in the US, generating around $40m in orders during the last financial year. We are therefore very well-positioned to take advantage of the opportunities offered by this strategic acquisition."
According to Dr William Ribich, President and CEO of Foster-Miller: "The skill sets of our two companies are uniquely complementary. This acquisition will be a prime opportunity for Foster Miller to add new personnel, technology and financial resources. This will allow continued expansion and growth in the commercial and defence markets in the US, UK and worldwide."
Foster-Miller had revenues of around £67.6m ($120m) and EBITDA of £12.9m ($22m) in FY2003/4, and has seen compound growth of around 30 per cent per annum over the last four years. It will maintain its name and premises, and will operate as a subsidiary of QinetiQ North America. Recently named one of the most innovative businesses in America by Inc. magazine, the company provides a range of specialised services to the military and industry. For example, its TALONTM robots have conducted over 10,000 bomb disposal missions in Iraq to date, and it is the world's largest supplier of add-on armour for military transport aircraft. The company also works with pharmaceutical giant Pfizer, providing automation based on its robotics technology.
The partnership will enable Foster-Miller to introduce QinetiQ's technologies into US markets. For example, QinetiQ has complementary expertise in robotics, the development of specialist equipment for military aircrew and super-strength nets - QinetiQ's X-Net and Foster-Miller's BoatTrap bring motor vehicles and boats respectively to a standstill while minimising the risk to onlookers and security personnel.
"This is a partnership where the whole really will be greater than the sum of its parts," says Foster Miller's Dr Ribich. "Separately, we are leaders in a number of technologies. Together, we can be world-beating."
QinetiQ's annual results for 2003/4 highlighted a 28 per cent rise in operating profits before exceptionals to £56.7m ($100.7m) on turnover which rose by three per cent to £795.4m ($1.41bn), as well as an operating cash inflow of £130.7m ($232.1m). QinetiQ's strong financial performance since moving into the private sector, especially last year's significant increase in cash flow, has facilitated its growth by acquisition in the US and UK, including the acquisition of UK technology firm HVR Consulting in August 2004.
The transaction between QinetiQ and Foster-Miller is expected to close later this year and is subject to customary regulator approvals.
"Strategically, the acquisition of Foster-Miller will be key to achieving QinetiQ's goal of growing our US business significantly," comments Dr David Anderson, President and CEO of QinetiQ Inc, QinetiQ's US subsidiary. "Foster-Miller is a remarkable fit with QinetiQ, both technologically and culturally. A recognised leader in providing innovative engineering solutions in fields such as robotics, advanced materials technology and medical devices, its complementary R&D work and broad range of customers will undoubtedly accelerate QinetiQ's expansion into the world's largest market for advanced technologies."
He continues: "In percentage terms, QinetiQ saw its highest levels of growth in the US, generating around $40m in orders during the last financial year. We are therefore very well-positioned to take advantage of the opportunities offered by this strategic acquisition."
According to Dr William Ribich, President and CEO of Foster-Miller: "The skill sets of our two companies are uniquely complementary. This acquisition will be a prime opportunity for Foster Miller to add new personnel, technology and financial resources. This will allow continued expansion and growth in the commercial and defence markets in the US, UK and worldwide."
Foster-Miller had revenues of around £67.6m ($120m) and EBITDA of £12.9m ($22m) in FY2003/4, and has seen compound growth of around 30 per cent per annum over the last four years. It will maintain its name and premises, and will operate as a subsidiary of QinetiQ North America. Recently named one of the most innovative businesses in America by Inc. magazine, the company provides a range of specialised services to the military and industry. For example, its TALONTM robots have conducted over 10,000 bomb disposal missions in Iraq to date, and it is the world's largest supplier of add-on armour for military transport aircraft. The company also works with pharmaceutical giant Pfizer, providing automation based on its robotics technology.
The partnership will enable Foster-Miller to introduce QinetiQ's technologies into US markets. For example, QinetiQ has complementary expertise in robotics, the development of specialist equipment for military aircrew and super-strength nets - QinetiQ's X-Net and Foster-Miller's BoatTrap bring motor vehicles and boats respectively to a standstill while minimising the risk to onlookers and security personnel.
"This is a partnership where the whole really will be greater than the sum of its parts," says Foster Miller's Dr Ribich. "Separately, we are leaders in a number of technologies. Together, we can be world-beating."
QinetiQ's annual results for 2003/4 highlighted a 28 per cent rise in operating profits before exceptionals to £56.7m ($100.7m) on turnover which rose by three per cent to £795.4m ($1.41bn), as well as an operating cash inflow of £130.7m ($232.1m). QinetiQ's strong financial performance since moving into the private sector, especially last year's significant increase in cash flow, has facilitated its growth by acquisition in the US and UK, including the acquisition of UK technology firm HVR Consulting in August 2004.
The transaction between QinetiQ and Foster-Miller is expected to close later this year and is subject to customary regulator approvals.
One of Foster-Miller's robots
Notes for Editors:
QinetiQ (pronounced ki' ne tik as in 'kinetic energy') is Europe's largest science and technology solutions company, with a turnover of £795.4m ($1.41bn) in 2003/4. It employs over 9,000 staff, including many of the UK's leading scientists and internationally acclaimed experts. Founded from the laboratories of the UK Ministry of Defence (MOD), today QinetiQ operates in markets as diverse as marine, energy, telecommunications, automotive, rail, electronics, defence, space, health, oil & gas, aerospace and information technology. QinetiQ's facilities include laboratories, clean rooms, indoor and outdoor ranges, wind tunnels, marine testing facilities, automotive test tracks and climatic testing facilities. QinetiQ's heritage covers the pioneering research and development of many household technologies such as liquid crystal displays (LCDs), carbon fibre, the technology for flat panel speakers, infra-red sensors and microwave radar, a life saving foetal heart monitoring system, plus other significant advancements in the areas of defence, security, transport and healthcare.
Foster-Miller Inc is an independent, privately held engineering, development and manufacturing company located in suburban Boston, MA, with additional offices in Albany, NY and Washington, DC. The firm was founded almost 50 years ago by three graduates of MIT who believed there was a need for a company that could solve clients' difficult technical problems through first-class analysis and design. The company maintains a staff of more than 350 mechanical, electrical, thermal, chemical, nuclear, aerospace, software and materials engineers as well as metallurgists, physicists, mathematicians, chemists, biologists and support staff working in the areas of transportation, robotics, advanced materials, custom machinery, power systems, biotechnology and aerospace. It is also a major manufacturer of military and industrial robots as well as armour products to protect troops. Visit www.foster-miller.com for further details.
QinetiQ (pronounced ki' ne tik as in 'kinetic energy') is Europe's largest science and technology solutions company, with a turnover of £795.4m ($1.41bn) in 2003/4. It employs over 9,000 staff, including many of the UK's leading scientists and internationally acclaimed experts. Founded from the laboratories of the UK Ministry of Defence (MOD), today QinetiQ operates in markets as diverse as marine, energy, telecommunications, automotive, rail, electronics, defence, space, health, oil & gas, aerospace and information technology. QinetiQ's facilities include laboratories, clean rooms, indoor and outdoor ranges, wind tunnels, marine testing facilities, automotive test tracks and climatic testing facilities. QinetiQ's heritage covers the pioneering research and development of many household technologies such as liquid crystal displays (LCDs), carbon fibre, the technology for flat panel speakers, infra-red sensors and microwave radar, a life saving foetal heart monitoring system, plus other significant advancements in the areas of defence, security, transport and healthcare.
Foster-Miller Inc is an independent, privately held engineering, development and manufacturing company located in suburban Boston, MA, with additional offices in Albany, NY and Washington, DC. The firm was founded almost 50 years ago by three graduates of MIT who believed there was a need for a company that could solve clients' difficult technical problems through first-class analysis and design. The company maintains a staff of more than 350 mechanical, electrical, thermal, chemical, nuclear, aerospace, software and materials engineers as well as metallurgists, physicists, mathematicians, chemists, biologists and support staff working in the areas of transportation, robotics, advanced materials, custom machinery, power systems, biotechnology and aerospace. It is also a major manufacturer of military and industrial robots as well as armour products to protect troops. Visit www.foster-miller.com for further details.
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