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QinetiQ to buy German airborne training services provider for EUR70m
(WebFG News) - FTSE 250 defence technology group QinetiQ has agreed to buy German airborne training services provider EIS Aircraft Operations, currently part of EIS Aircraft Group, for 70m.
Aircraft Operations delivers threat representation and operational readiness for military customers. In the year to the end of December 2017, it generated revenue of 20.1m and earnings before interest, tax, depreciation and amortisation of 5.4m.
The company has been the exclusive provider of low-speed aerial training services to the German armed forces since 1999, and delivers aerial training services to the US Air Force in Europe. It also modifies aircraft for special missions through the integration of sensors and digital systems used in intelligence, surveillance and reconnaissance.
QinetiQ said the deal, which is expected to enhance its earnings per share in the current financial year, will strengthen its capability integration, threat representation and operational readiness offering to customers, and accelerate its international growth strategy.
Chief executive officer Steve Wadley said: "EIS Aircraft Operations is a high growth business which provides airborne training at a disruptively low price. This acquisition supports our strategy for international growth by providing access to the European defence market and enhancing our ability to deliver capability integration, threat representation and operational readiness for customers."
"We look forward to welcoming the Aircraft Operations team in Germany to QinetiQ and working with them to continue to grow the business both within their existing markets and beyond."