QinetiQ Group plc has agreed to acquire 85% of the shares of Lincoln headquartered Inzpire Group 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 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.
Steve Wadey, QinetiQ CEO, says: “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, adds:“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”