Britain’s QinetiQ Group last Friday said its U.S. subsidiary, QinetiQ, Inc., has agreed to acquire Avantus Federal for $590 million in a deal that will more than double the size of its U.S. business and position it to accelerate growth in the federal space.

Avantus, which is based in Northern Virginia and is a portfolio company of NewSpring Holdings, had $298 million in sales for the one-year period that ended June 30, $32 million in adjusted operating profit, and has 1,150 employees, 92 percent of which hold security clearances.

QinetiQ, Inc. had $207 million in sales for the year ended in March and has just under 1,000 employees.

Avantus has generated organic revenue growth above 10 percent for the past three years and consistently delivers operating margins of at least 10 percent. QinetiQ said the company’s sales are expected to continue growing 10 percent or more with profit margins in the double digits. Avantus has a qualified order pipeline of $2.4 billion over the next five years.

The deal is expected to close later this year, subject to regulatory approvals in the U.S.

QinetiQ said the acquisition will strengthen its capabilities in cyber technologies and operations, intelligence analysis and operations, information solutions and mission services, and expand its customer base within the Department of Defense, including with the Air Force, Office of Secretary of Defense, and Space Development Agency. The deal will also position QinetiQ, Inc. in the Department of Homeland Security, intelligence agencies and federal civilian customers.

“This acquisition is an important step in the execution of QinetiQ’s five-year ambitions to expand our presence in the U.S., the largest security and defense market in the world,” Steve Wadley, CEO of QinetiQ Group, said in a statement. “Avantus significantly enhances our U.S. offering and provides a strong platform from which to further grow our U.S. operations. Avantus has a track record of high growth at attractive markings and is well-positioned across priority areas for key defense and intelligence customers in the U.S.”

Avantus provides cyber, data analytics and software development solutions to its customers. The company’s senior leadership is expected to join QinetiQ, strengthening the company’s management expertise and leadership cadre in the U.S.

QinetiQ Group currently has more than 6,500 employees. Once the acquisition closes, Avantus is expected to add about 25 percent to the group’s sales, bringing them to $1.9 billion, with about 25 percent coming from the U.S., 62 percent the United Kingdom, and the remainder from Australia and other Five Eyes nations. QinetiQ’s sales target is $2.8 billion by its fiscal year 2027.

Guggenheim Securities served as financial adviser to Avantus and NewSpring on the deal. QinetiQ’s financial advisers were Citizens and Gleacher Shacklock.

The enterprise deal value includes a $70 million tax benefit to QinetiQ.