Strategic review completed and US sale agreed
Summary by AI BETAClose X
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION - FOR IMMEDIATE RELEASE
12 November 2026
Completion of strategic review and agreed sale of US business
QinetiQ Group plc (“QinetiQ”, the “Group”) today announces an update to the Group’s strategy and the agreed sale of its US business, QinetiQ Inc. to Serco plc (“Serco”) for $292 million.
A strong outcome for all stakeholders
- Agreement to sell US business to Serco for purchase price of US$292m
- The transaction will create a stronger focused company with greater visibility
- £200 million of proceeds expected to be returned to shareholders following completion through additional share buybacks
- Strengthens balance sheet to enable increased investment in organic growth
Key transaction terms
Under the terms of the agreement, Serco will acquire the entire issued share capital of QinetiQ Inc. for a total cash consideration of $292 million, on a cash-free, debt-free basis and subject to customary completion adjustments.
Serco is an established provider to the US federal government. Its North America division generates annual revenue of approximately $2 billion and has capabilities and customer relationships complementary to those of QinetiQ Inc.
QinetiQ believes Serco provides scale to drive the future growth of the US business and is a good long-term owner for its customers and employees.
QinetiQ’s focus on core markets with attractive growth and returns
In May 2026, QinetiQ announced a review of its US business and options to deliver enhanced returns. Having assessed all relevant options, the Group has concluded that the agreed sale offers the best route to realise value for all stakeholders.
This sale positions QinetiQ as a stronger, focused, higher-quality company. With a strengthened balance sheet, QinetiQ will concentrate its resources on the UK, European NATO and key allied defence and security markets, where it has stronger positions and sees more attractive opportunities for growth and returns. The Group’s differentiated capabilities, underpinned by long-term customer relationships and contracts, are aligned with growing demand for accelerating warfighting readiness across these core markets.
Following completion, the Group expects to return £200m of the proceeds back to shareholders through uplifting the current FY28 and FY29 share buybacks by £100m p.a. In addition, the Group will increase investment in digital and AI technology, infrastructure and its people to deliver enhanced value for its customers and sustainable profitable growth for shareholders.
Further information on the disposal
QinetiQ Inc. generated revenue of $172 million and underlying operating profit of $13 million in the six months ended 30 September 2026. The Group’s FY27 guidance assumes revenue of $385m at c.7% margin for the US business. QinetiQ Inc. had a carrying value of £393 million in the QinetiQ balance sheet as at 31 March 2026; consequently, the Group has recognised a non-cash impairment charge of c.£175 million in its interim results.
Completion is subject to customary regulatory approvals, including US antitrust and foreign-investment clearances, together with the approval of appropriate arrangements relating to the business’s classified activities. Completion is currently expected in the first quarter of 2027.
For any enquiries, please contact:
|
Andrew Carter, Group Investor Relations Director: Stephanie Mann, Group Head of Media Relations: |
+44 7392 289116 +44 7770 720268 |
Inside information
This announcement contains inside information within the meaning of Article 7 of the Market Abuse Regulation No. 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018, as amended and supplemented ("UK MAR"), and is disclosed in accordance with QinetiQ's obligations under Article 17 of UK MAR. The person responsible for the release of this announcement on behalf of QinetiQ is James Field, Company Secretary.
Cautionary notice
This announcement may not be distributed, directly or indirectly, in or into or from any other jurisdiction where to do so would constitute a violation of the relevant laws of such jurisdiction. This announcement does not constitute or form part of an offer to sell or issue, or any solicitation of an offer to buy or subscribe for, any securities referred to herein in any jurisdiction. The distribution of this announcement and other information in connection with the proposed Transaction in certain jurisdictions may be restricted by law and persons into whose possession any document or other information referred to herein comes should inform themselves about and observe any such restriction. Any failure to comply with these restrictions may constitute a violation of the securities laws of any such jurisdiction.
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