QinetiQ Group PLC (LON: QQ) has agreed to buy military training systems provider Inzpire Group for £23.5mln.
The deal will see defence technology firm QinetiQ buy 85% of Inzpire immediately, with the remaining 15% to be bought in two years, the defence technology provider said on Monday.
QinetiQ said Inzpire, which provides training and mission systems for military customers internationally, expects to deliver annual profit (EBITDA) of £2.0mln in the year on revenues of £13.3mln. Some three-quarters of its revenue comes from airborne training and evaluation services, primarily for Britain’s Royal Air Force. Inzpire also sells aviation mission system products, including full mission support systems integrated with aircraft avionics.
Inzpire is expected to deliver £13.3m revenue and £2.0m of adjusted Ebita in the financial year to 31 August.
"Our investment enhances our overall offer in defence operational training and mission systems, both in the UK and internationally,” QinetiQ CEO Steve Wadey said in a statement.
“Defence operational training represents an area of significant growth as customers around the world increasingly recognise the need to enhance their training capabilities cost-effectively. The combination of Inzpire and QinetiQ's capabilities, complemented by our previous acquisitions, creates a leading provider of critical defence training."