QinetiQ US has entered into a definitive agreement to acquire 100% of Avantus Federal from NewSpring Holdings. The acquisition represents a transformational platform for QinetiQ, significantly expanding its presence within the U.S. intelligence and national security communities. The strategic rationale for the merger is to create a powerful growth platform that addresses complex global defense and cyber challenges at scale. Avantus brings a strong order backlog and highly complementary capabilities in data analytics and cyber operations that enhance QinetiQ's existing portfolio of autonomous systems and sensing technologies. For Avantus, joining QinetiQ US provides the global scale and infrastructure necessary to meet the rapidly evolving demands of its government customers. The combined entity is positioned as a unique innovator in the defense market, capable of delivering technical differentiation and "speed to impact" for warfighters and intelligence operators. The transaction was advised by Guggenheim Securities for the sell-side and Citizens and Gleacher Shacklock for the buy-side.

AVANTUS FEDERAL, which reported an EBITDA margin of LOGIN in 2022, is valued in this transaction at an EV/EBITDA multiple of LOGIN, representing a LOGIN premium to the 13.0x average currently observed in the TMT (Tech, Media, Telecom) sector.

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