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RNS Number : 6626E
QinetiQ Group plc
22 October 2018
News Release
QinetiQ Group plc
QinetiQ enhances capability in defence operational training and
mission systems with strategic investment in Inzpire
22 October 2018
QinetiQ Group plc ("QinetiQ" or "the Group") announces that it
has agreed to acquire 85% of the shares of Inzpire Group Limited
("Inzpire" or "the Company"), with an agreement to acquire the
remaining 15% after two years, for a total consideration of GBP23.5
million.
Inzpire has a five-year track record of consistent revenue
growth, and is expected to deliver GBP13.3m revenue and GBP2.0m of
adjusted EBITDA in the financial year to 31 August 2018.
Inzpire is a leading provider of operational training and
mission systems for military customers in the UK and
internationally. Approximately three quarters of its revenue comes
from airborne training and evaluation services, primarily for the
Royal Air Force. The balance of its revenue is from the sale of
aviation mission system products ranging from standalone tablets to
full mission support systems integrated with aircraft avionics.
Strategic rationale
--Enhances QinetiQ's capabilities in defence operational
training
o With unparalleled domain expertise and strong relationships
with UK Front Line Commands, Inzpire enhances QinetiQ's
training capabilities and complements our recent acquisitions
o This capability aligns well to the UK demand for live
and synthetic training
o Inzpire has a number of personnel embedded alongside
customers on both F35 and Typhoon. The combination of QinetiQ
and Inzpire creates a leading position in mission data
and advice for these aircraft in international markets
--Complements QinetiQ's mission systems expertise with
portfolio of disruptive products
o Inzpire creates cost effective mission control systems
that are disrupting a market traditionally dominated by
large defence contractors
o In addition to access to capital for growth, this strategic
investment provides Inzpire with access to QinetiQ's missions
systems capabilities to enhance and broaden its differentiated
offerings
--Significant international potential
o Having built its credibility in the UK, Inzpire is growing
internationally, working for the European Defence Agency
and customers in the Middle East
o Inzpire will leverage QinetiQ's international routes
to market, including its Joint Ventures in the Middle East,
to meet growing global demand
Steve Wadey, QinetiQ CEO, said:
"Over the past 13 years, Inzpire has become one of the most
trusted names in UK defence. This trust is built on their rigorous
customer focus, positive culture and their peoples' extensive
experience. Being deeply embedded with their customers, Inzpire
provides training and services that are critical to maintaining and
building defence capability.
"Our investment enhances our overall offer in defence
operational training and mission systems, both in the UK and
internationally. 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."
Hugh Griffiths, Inzpire CEO, said:
"We are delighted QinetiQ is becoming our new investor. This
transaction will help us accelerate our progress in delivering a
"revolution in defence" and our team are hugely excited about the
opportunities this tie-up presents"
This announcement contains inside information and the person
responsible for making this announcement is Jon Messent, Company
Secretary.
There will be a call for QinetiQ analysts and investors at 0800
hours UK time on 22 October 2018.
Dial in details: +44 (0) 20 3003 2666 Password: QinetiQ
A playback of the call will be available shortly afterwards by
dialling +44 (0) 208 196 1998 and entering PIN number 2671013#
Notes for Editors:
About QinetiQ:
QinetiQ (QQ.L) is a leading science and engineering company
operating primarily in the defence, security and critical
infrastructure markets. We work in partnership with our customers
to solve real world problems through innovative solutions
delivering operational and competitive advantage.
Visit our website www.QinetiQ.com
Follow us on LinkedIn and Twitter @QinetiQ
Visit our blog www.QinetiQ-blogs.com
About Inzpire:
Inzpire is a multi award-winning supplier of advanced defence
training, technical services and cutting-edge mission systems. The
company is a trusted partner of the UK MOD and employ highly
experienced former military personnel who work alongside very
skilled defence engineers and business professionals to deliver
operationally credible solutions to military customers. Follow us
on LinkedIn and Twitter @InzpireLimited and visit us at
https://www.linkedin.com/company/inzpire-ltd/ and
www.inzpire.com.
For further information please contact:
David Bishop, Group Director Investor Relations
and Communications: +44 (0) 7920 108675
Ian Brown, Group Head of Investor Relations: +44 (0) 7908 251123
Jon Hay-Campbell, Group Head of Communications: +44 (0) 7500 856953
Disclaimer
This document contains certain forward-looking statements
relating to the business, strategy, financial performance and
results of the Company and/or the industry in which it operates.
Actual results, levels of activity, performance, achievements and
events are most likely to vary materially from those implied by the
forward-looking statements. The forward-looking statements concern
future circumstances and results and other statements that are not
historical facts, sometimes identified by the words 'believes','
expects', 'predicts', 'intends', 'projects', 'plans', 'estimates',
'aims', 'foresees', 'anticipates', 'targets', 'goals', 'due',
'could', 'may', 'should', 'potential', 'likely' and similar
expressions, although these words are not the exclusive means of
doing so. These forward-looking statements include, without
limitation, statements regarding the Company's future financial
position, income growth, impairment charges, business strategy,
projected levels of growth in the relevant markets, projected
costs, estimates of capital expenditures, and plans and objectives
for future operations. Forward-looking statements contained in this
announcement regarding past trends or activities should not be
taken as a representation that such trends or activities will
continue in the future. Nothing in this document should be regarded
as a profit forecast.
The forward-looking statements, including assumptions, opinions
and views of the Company or cited from third party sources,
contained in this announcement are solely opinions and forecasts
which are uncertain and subject to risks. Although the Company
believes that the expectations reflected in these forward-looking
statements are reasonable, it can give no assurance that these
expectations will prove to be correct. Actual results may differ
materially from those expressed or implied by these forward-looking
statements. A number of factors could cause actual events to differ
significantly and these are set out in the principal risks and
uncertainties section of this document.
Most of these factors are difficult to predict accurately and
are generally beyond the control of the Company. Any
forward-looking statements made by, or on behalf of, the Company
speak only as of the date they are made. Save as required by law,
the Company will not publicly release the results of any revisions
to any forward-looking statements in this document that may occur
due to any change in the Directors' expectations or to reflect
events or circumstances after the date of this document.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
MSCGGGPCUUPRGCB
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