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 £23.5 million.
Inzpire has a five-year track record of consistent revenue growth, and is expected to deliver £13.3m revenue and £2.0m 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.
