Qinetiq to sell Federal IT Services business to V2X for $31m

(Sharecast News) - Defence and security firm Qinetiq said on Tuesday that as part of its US restructuring programme, it has agreed to sell its non-core Federal IT Services business to V2X for $31. The sale of the business, which consists of data and cyber services, is expected to complete before the end of September.

Qinetiq said the divestiture demonstrates "the disciplined execution of our strategy and capital allocation policy in action".

Proceeds from the sale will support the company's ongoing buyback programme and reduce net debt.

"This disposal also reinforces the clear focus of our renewed US growth strategy on four core market segments, where we see increasing demand and have differentiated capability; maritime systems, advanced sensors, space and missile defence mission support and persistent surveillance," Qinetiq said.

"Each of these market segments has good long-term growth potential and together represent the majority of our revenue in the US."