Defence firm Qinetiq has announced its acquisition of UK-based consulting organisation HVR Consulting Services Limited (HVR).
HVR has provided the defence sector with technical and management consultancy since 1983.
QinetiQ has paid an initial consideration of £9.2m for HVR. Following an earnout period based on the results for 12 months ending 31 January 2005, QinetiQ will pay a further consideration of up to £3.8m, dependent on HVR’s performance.
"Our strong financial performance since we moved into the private sector, especially the significant increase in our cash flow last year, has allowed us to grow by acquisition in the UK as well as organically," says QinetiQ’s Mike Goodfellow, managing director of Integrated Services. "HVR meets our firm criteria for acquisitions in the UK: it is profitable and successful in its own right, has a strong management team and complementary technical skills. We believe both organisations will see significant benefits from the considerable synergies in our skills and market knowledge."
HVR, which provides technical and management consultancy to the UK defence sector, will continue to operate autonomously under its existing management team, and will retain its name and premises. Two QinetiQ directors, Mike Goodfellow and John Walters (financial director, Integrated Services) will join its board.
"We are looking forward to working closely with QinetiQ," says HVR chief executive Peter Cook. "Our complementary skills base means that we can augment their offering with our expertise in fields such as project engineering, risk assessment, cost analysis and forecasting."
QinetiQ’s annual results for 2003/4 – announced in June 2004 – highlighted a 28pc rise in operating profits before exceptionals to £56.7m on turnover, which rose by 3pc to £795.4m while reporting an operating cash inflow of £130.7m.
