QinetiQ Group conducted an “unsuccessful acquisition activity” in the first half of fiscal year (FY) 2022, according to the UK-based defence contractor.
QinetiQ did not identify its acquisition target; however, it reported that it incurred GBP4.1 million (USD5.5 million) in costs for the activity. “It was a very big focus earlier in the year for us,” chief financial officer David Smith said on 11 November.
Despite the unrealised purchase, QinetiQ remains committed to pursuing mergers and acquisitions (M&A) “in a number of geographies”, especially in the United States, Smith told analysts.
“We think that's really important because our US business today has good capability but it doesn't have the full-scope capability that we have pretty well in the UK,” Smith said. “Therefore, to develop that business, we do need to add to capability areas for that business, and the natural way to do that is through M&A.”
QinetiQ previously indicated that it wants to more than double the size of its US business over the next five years through organic growth and acquisitions. QinetiQ achieved a similar outcome almost two years ago when it acquired US sensor technology company Manufacturing Techniques.
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