QinetiQ says new acquisition will more than double the size of its U.S. operations

British company QinetiQ said today it has agreed to acquire Manufacturing Technologies, dubbed MTEQ, in a deal that would more than double its U.S. business.

QinetiQ said it will pay $105 million on completion of the deal as well as an earn-out worth up to $20 million based on financial targets over three years.

MTEQ specializes in sensing technology and counts the U.S. Army among its customers. The contractor, which is based in two locations in Virginia and has 360 employees, generated sales during the last year of $167 million.

QinetiQ said the deal will allow it to create a U.S. operation of about $300 million in sales and 750 employees.