QinetiQ Group plc (‘QinetiQ’ or the ‘Group’) announces today that it has agreed to the sale of S&IS, a non-core security operations and access control business within QinetiQ North America Mission Solutions Group, to ManTech International Corporation for a total consideration of $60 million, payable in cash, which will generate approximately $40 million of net proceeds after tax. The disposal is subject to certain closing conditions and is expected to complete shortly.
The business unit being sold is headquartered in Fairfax, Virginia, US and provides integrated security management for the US Government. The business was purchased by QinetiQ as part of the Analex Corporation acquisition in March 2007. It has approximately 370 full and part time employees operating across a range of government sites in the United States. In the year ended 31 March 2010, this business reported a turnover of $55.9 million and operating profit of $4.7 million. The entity had gross assets of $8.8 million as at 31 March 2010.
The proceeds from the sale will be used to strengthen the Group balance sheet.