UK defence and security technology company Qinetiq is to use the £150 million ($266 million) primary proceeds from next month’s initial public offering (IPO) to reduce its debt and pension scheme deficit in the short term, as well as continuing to grow its business. Main shareholders Carlyle Group (31%) and the UK Ministry of Defence (56%) also intend to sell part of their holdings. Qinetiq says it will use the income to grow its business “both organically and through appropriate acquisitions”. Analyst Sandy Morris of ABN Amro says any further acquisition targets are likely to be in the USA, but warns the company may find suitable targets are expensive, with thriving US-based defence contractors pushing up acquisition prices.

Source: Flight International