Britain’s QinetiQ has agreed to acquire Virginia-based Cyveillance, Inc., which develops and sells software products that help commercial firms monitor for cyber threats over the Internet, to boost its capabilities in the cyber security area and tap into another growing areas of the security market in the U.S. QinetiQ will pay $40 million initially for Cyveillance and up to $40 million more depending on the firm’s financial performance for the two-year period ending in Dec. 2010. The deal is expected to close in June. Cyveillance will become part of the Missions Solutions Group of QinetiQ North America (QNA), the U.S.-based division of QinetiQ. QNA already provides information assurance and network security services such as consulting related to the Federal Information Security Management Act. Customers for these services include the intelligence community, Army, Navy, and federal civilian agencies such as the Departments of Commerce and Homeland Security. Cyveillance will give QNA cyber security products it can market to existing customers and potentially new customers in the U.S. defense and security markets. Cyveillance’s products are used by company’s to conduct Internet monitoring for threats to their information networks, such as phishing, identity theft, fraud, corporate security and more. Cyveillance had $10.4 million in sales last year and an operating loss of $1.6 million.