NewSpring Holdings exits Avantas Federal

The deal was for $590 million.

  • The buyer is QinetiQ US, a subsidiary of QinetiQ Group plc
  • Citizens and Gleacher Shacklock served as joint lead financial advisers to QinetiQ while Baker McKenzie served as counsel
  • Guggenheim Securities, LLC served as financial adviser to Avantus and NewSpring Holdings, and Baker Tilly provided financial due diligence expertise

QinetiQ US, a subsidiary of QinetiQ Group plc, a global defense and security company, has acquired Virginia-based Avantas Federal, a data, cyber and space services and solutions company. The deal was for $590 million. The seller is NewSpring Holdings.

“I am delighted that we have completed the acquisition of Avantus today – it is a strategic milestone in our five-year ambition to build an integrated global defence and security company, delivering innovation for our customers’ mission,” said Steve Wadey, group CEO of QinetiQ Group plc, in a statement. “This acquisition extends our customer base, strengthens our capabilities and builds scale in the largest defence and security market in the world. With a strong track record of 10%+ growth at attractive margins, Avantus is a brilliant strategic and cultural fit and positions us to meet the increasing mission-critical needs of our US defence and intelligence customers with agility and pace.”

Citizens and Gleacher Shacklock served as joint lead financial advisers to QinetiQ while Baker McKenzie served as counsel. Guggenheim Securities, LLC served as financial adviser to Avantus and NewSpring Holdings, and Baker Tilly provided financial due diligence expertise. Blank Rome LLP and Kirkland & Ellis LLP served as counsel to Avantus.

QinetiQ US employees are based predominantly in Virginia and Massachusetts.