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QinetiQ sells US services division

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QinetiQ (LON:QQ.), the company spun out of the government’s Defence, Evaluation and Research Agency, is to sell its US services division.

The company has conditionally agreed to sell the division to The SI Organization for an initial cash sum of US$165mln, with up to US$50mln more due to come, depending on performance.

QinetiQ said it also plans to pay back around £150mln of its remaining private placement debt and buy back £150mln of the company’s shares.

The company said it would not rebase – i.e. cut – the company dividend as a result of the disposal.

"Our strategic review concluded that the sale of the US Services division represents the best route to maximise value for our shareholders from these assets, while retaining a significant footprint in North America for the group through our Global Products division and Cyveillance business,” said Leo Quinn, the group’s chief executive.

Shares in QinetiQ were down 1% in lunchtime trading.

Quick facts: QinetiQ

Price: 340.4 GBX

LSE:QQ.
Market: LSE
Market Cap: £1.93 billion
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