Editing Qinetiq (section)

==History==

===Creation and early years===
In early 2001, defence minister [[Lewis Moonie]] announced the creation of QinetiQ via the privatisation of the [[Defence Evaluation and Research Agency]] (DERA). At the time, Moonie stated that the entity would remain a British business, being based in the UK, and that the [[Ministry of Defence (United Kingdom)|Ministry of Defence]] (MoD) would retain a 'special share' in the company, while safeguards would be in place to prevent conflicts of interest.<ref>{{cite web |title=Dr Lewis Moonie: Written Answers |url=https://www.theyworkforyou.com/wms/?id=2002-12-05.85WS.0 |publisher=QinetiQ |date=5 December 2002 |access-date=2 March 2021}}</ref>

By April 2002, while QinetiQ had taken steps to operate on a commercial basis and saw third parties as its key growth area, 80% of its annual sales was reportedly being derived from the UK MoD. It was observed that QinetiQ's close relationship with the MoD gave it a competitive edge over most private-sector rivals.<ref>{{cite web |url = http://news.bbc.co.uk/1/hi/business/1957320.stm |first = James |last = Arnold |title = QinetiQ's new battle |publisher = BBC News |date = 30 April 2002}}</ref>

Initially, QinetiQ was entirely owned by the British government; it was planned for a [[stock market]] flotation of the firm to be conducted sometime during 2002.<ref>{{cite web |url = https://www.flightglobal.com/news/articles/dera-becomes-qinetiq-128623/ |title = DERA becomes QinetiQ |publisher = Flight International |date = 10 April 2001}}</ref> However, this flotation was postponed; according to aerospace industry periodical [[Flight International]], a lack of investor confidence was the principal reason for the delay.<ref>{{cite web |url = https://www.flightglobal.com/news/articles/qinetiq-sell-off-on-hold-as-investor-confidence-fade-144447/ |title = Qinetiq sell-off on hold as investor confidence fades |first = Alexander |last = Campbell |publisher = Flight International |date = 12 March 2002}}</ref>

In late 2002, the [[Carlyle Group]], an American [[private equity]] firm, publicly declared its intention to purchase a large stake in QinetiQ.<ref>{{cite web |url = https://www.flightglobal.com/news/articles/carlyle-moves-in-on-mod-research-organisation-154537/ |title = Carlyle moves in on MoD research organisation |first = Alexander |last = Campbell |publisher = Flight International |date = 10 September 2002}}</ref><ref>{{cite web |url = https://www.flightglobal.com/news/articles/carlyle-makes-hay-in-263m-qinetiq-share-sale-158947/ |title = Carlyle makes hay in $263m Qinetiq share sale |publisher = Flight International |date = 10 December 2002}}</ref> In February 2003, the Carlyle Group completed the acquisition of a 33.8% share for £42 million. Prior to QinetiQ's flotation years later, ownership of the firm was divided between the MoD (56%), Carlyle Group (31%) and staff (13%). The Carlyle Group was expected to remain invested in QinetiQ for between three and five years, after which a stock exchange float would take place.<ref>{{cite web |url=https://www.theguardian.com/business/2002/sep/15/businessofresearch.arms |title=For sale to the highest bidder: Britain's secret weapons labs |first=Jamie |last = Doward |work=The Guardian |date=15 September 2002 |access-date=3 April 2015}}</ref>

In September 2004, QinetiQ acquired the US defence companies ''Westar Corporation''<ref>{{cite web |url=https://www.wsj.com/articles/SB109512515682217013 |title=QinetiQ Acquires Westar Aerospace In $130 Million Deal |first=Jonathan |last = Karp |date=14 September 2004 |work=The Wall Street Journal |access-date=3 April 2015}}</ref> and ''[[Foster-Miller]]'', maker of the [[Foster-Miller TALON|Talon]] robot.<ref>{{cite web |url=http://www.bizjournals.com/boston/stories/2004/11/08/daily21.html |title=QinetiQ caps $163M buy of Foster-Miller |work=Boston Business Journal |access-date=3 April 2015}}</ref> Also in 2004, it acquired ''HVR Consulting Services'' a leading UK-based engineering consultancy.<ref>{{cite web |url=http://archive.dailyecho.co.uk/2004/8/11/24214.html |title=Newsquest – Home |publisher=dailyecho.co.uk |access-date=3 April 2015}}</ref>

In early August 2005, the company announced it would acquire ''Apogen Technologies, Inc.'', pending regulatory approval; according to QinetiQ's website, the purchase came at a cost of $288.0m (£162.7m).<ref>{{cite web|url=http://www.redorbit.com/news/technology/196151/britains_qinetiq_to_buy_apogen/index.html|archiveurl=https://web.archive.org/web/20110522052959/http://www.redorbit.com/news/technology/196151/britains_qinetiq_to_buy_apogen/index.html|url-status=dead|title=Britain's QinetiQ to buy Apogen|archivedate=22 May 2011}}</ref> In September 2005, the company acquired a 90% share of ''Verhaert Design and Development NV'' (VDD), a Belgian space systems integrator.<ref name=da-20050905>{{cite news |url=http://www.defense-aerospace.com/article-view/release/62503/qinetiq-buys-belgian-space-firm-(sep-5).html |title=QinetiQ Acquires a 90% Share of Verhaert Design and Development NV |publisher=Briganti et Associés |website=defense-aerospace.com |location=France |date=5 September 2005 |access-date=24 August 2020}}</ref> In October that year, it acquired Broadreach Networks Limited, a supplier of [[Wi-Fi]] internet equipment to the European rail industry,<ref>{{cite web |url=http://www.eetimes.eu/uk/172300114;jsessionid=TNBJKGMVT3JEWQSNDLRSKHSCJUNN2JVN |title=Electronic Engineering Times Europe : Industry News, Learning center, electronic design center – Electronics Eetimes |work=eetimes.eu |access-date=3 April 2015}}{{dead link|date=January 2019 |bot=InternetArchiveBot |fix-attempted=yes }}</ref> and in February 2006, it bought Graphics Research Corporation Ltd, developer of the Paramarine software suite of ship and submarine design tools.<ref>{{cite web|url=http://www.theengineer.co.uk/Articles/293667/QinetiQ+buys+software+company.htm|archiveurl=https://web.archive.org/web/20060321063031/http://www.theengineer.co.uk/Articles/293667/QinetiQ+buys+software+company.htm|url-status=dead|title=QinetiQ buys software company|archivedate=21 March 2006}}</ref>

[[File:Qinetiq Alpha Jet arrives RIAT Fairford 10thJuly2014 arp.jpg|thumb|240px|QinetiQ Dassault/Dornier [[Alpha Jet]] (ZJ647) arrives at [[RAF Fairford]], Gloucestershire, England, for the [[Royal International Air Tattoo]] (2014)]]

===Stock exchange listing===
On 12 January 2006, an announcement was made in Parliament by [[John Reid, Baron Reid of Cardowan|John Reid]], Secretary of State for Defence, regarding the pending floatation of QinetiQ. Reid stated that the Carlyle Group 'will continue to retain a significant stake in the company', and that the government would continue to hold a '[[golden share]]' to protect the UK's security and defence interests.<ref>{{cite web |url = https://publications.parliament.uk/pa/cm200506/cmhansrd/vo060112/wmstext/60112m01.htm |title = QinetiQ Shareholder Team |publisher = [[Hansard]] |date = 12 January 2006}}</ref> On 10 February 2006, QinetiQ was floated on the [[London Stock Exchange]]. The valuation of the company, and of how much taxpayers would benefit from QinetiQ's privatisation, was a subject of considerable debate and controversy.<ref>{{cite web |url=https://www.independent.co.uk/news/business/news/qinetiqs-1631bn-flotation-will-sell-taxpayer-short-6111899.html |title=Qinetiq's £1bn flotation 'will sell taxpayer short' |work=The Independent |first=Michael |last=Harrison |date=13 January 2006 |access-date=24 October 2017}}</ref><ref>{{cite web |url=http://www.iii.co.uk/articles/articledisplay.jsp?article_id=4385908&section=ShareDealing |title=News |work=Interactive Investor |access-date=3 April 2015}}</ref><ref>{{cite web |url=http://observer.guardian.co.uk/business/story/0,,1686487,00.html |title=Frank Kane: Qinetiq arrogance has sunk this flotation to new depths |first=Frank |last = Kane |work=The Guardian |date=15 January 2006 |access-date=3 April 2015}}</ref><ref>{{cite news |url=http://news.bbc.co.uk/1/hi/business/4653722.stm |title=Business – Reid defends Qinetiq's sale price |date=27 January 2006 |publisher=BBC News |access-date=3 April 2015}}</ref>

The company had been valued at between £1.1bn and £1.3bn, with the MoD holding estimated to be worth £616m – £728m, the Carlyle Group's holding £341m – £403m, and staff/management's holding worth £143m – £169m. Controversy was generated by the very large returns generated for both the [[Carlyle Group]] and senior managers at the company; reportedly [[Sir John Chisholm]] is speculated to have benefitted by over £20 million alone.<ref>{{cite web |url = https://www.theguardian.com/business/2006/jan/29/arms.theobserver |title = A swift killing in the defence sector |publisher = The Observer |date = 29 January 2006}}</ref> [[Lewis Moonie|Lord Moonie]], who handled the initial sale, stated in 2006 that the government's 31 per cent stake should not have been sold when equity markets were languishing in 2002. Moonie said that he had argued for the sale to be delayed, but was over-ruled by the Treasury, which had convinced the [[Ministry of Defence (UK)|Ministry of Defence]] to go ahead.<ref>{{cite web |url=http://search.ft.com/ftArticle?sortBy=gadatearticle&queryText=qinetiq+controversy&page=2&y=0&aje=false&x=0&id=060113000988&ct=0 |title=FT.com / Search |work=Financial Times |access-date=3 April 2015}}{{dead link|date=April 2018 |bot=InternetArchiveBot |fix-attempted=yes}}</ref>

Controversy also arose around the fact that retail investors were excluded from the [[initial public offering]] (IPO) due to QinetiQ's complexity and that institutional investors would require less complicated marketing and financing. This led to contrasts with the 'Sid' campaign for [[British Gas plc]] in 1986, where retail investors were encouraged to buy shares, with discounts and a large advertising campaign. The issue was partially resolved by allowing some [[brokerage firm]]s to place orders in the IPO as part of a combined order, allowing the firm to purchase as though an [[institutional investor]] but on behalf of clients. While this did not result in a public campaign or retail investor discounts, it did allow many investors to purchase shares. Upon its floating on 10 February 2006, QinetiQ had an IPO of 200p per share, resulting in a market value of £1.3bn. On 13 February 2006, shares closed at 219.5p, valuing it at over £1.4bn.<ref>{{cite news |url = http://www.ft.com/cms/s/0/23fb0f1e-9a06-11da-8b63-0000779e2340.html |title = Qinetiq IPO raises £290m |newspaper = Financial Times |date = 10 February 2006}}</ref>

Speculation that a consortium including QinetiQ was about to win a £10bn MoD training contract helped push their share price back above 190p in early November 2006. It was announced on 17 January 2007 that the QinetiQ-led [[Metrix UK|Metrix consortium]] was the preferred bidder for package one of the MoD's Defence Training Rationalisation programme, worth approx £16bn.<ref>[http://nds.coi.gov.uk/Content/Detail.asp?ReleaseID=257220&NewsAreaID=2 South Wales home for defence training hub]{{dead link|date=April 2018 |bot=InternetArchiveBot |fix-attempted=yes }}</ref>
[[Image:RV Triton bow.jpg|thumb|right|240px|QinetiQ's experimental {{RV|Triton}}]]

===NAO inquiry===
In 2007, the [[National Audit Office (United Kingdom)|National Audit Office]] conducted an inquiry into the privatisation to determine whether UK taxpayers received good value for money. The inquiry looked at the following issues:
* the choice of privatisation strategy;
* management of the process (the split of the Defence Evaluation and Research Agency into two, the sale to Carlyle and the flotation);
* costs incurred and the proceeds achieved; and
* whether the deal met its objectives.<ref>{{cite web |url=http://www.nao.org.uk/report/the-privatisation-of-qinetiq/ |title=The privatisation of QinetiQ |work=National Audit Office |date=23 November 2007 |access-date=3 April 2015}}</ref>
In November 2007, the NAO reported that taxpayers could have gained "tens of millions" more and was critical of the incentive scheme given to QinetiQ managers, the 10 most senior of whom gained £107.5 million on an investment of £540,000 in the company's shares. The return of 19,990% was described as "excessive" by the NAO. The role of QinetiQ's management in negotiating terms with the [[Carlyle Group]] while the private equity company was bidding for the business was also criticised by the NAO. Carlyle bought a third of the business for £42 mmillion, which grew in value to £372 million in less than four years.<ref name=taxpayer_cost>{{cite news |url=http://news.bbc.co.uk/1/hi/business/7108444.stm |title=Qinetiq deal 'cost UK taxpayers' |date=23 November 2007 |publisher=BBC News |access-date=3 April 2015}}</ref> However, the [[Ministry of Defence (UK)|Ministry of Defence]] defended the sale:
:"It has delivered excellent value for money, generating more than £800m for the taxpayer, while protecting UK defence and security interests," said [[Ann Taylor, Baroness Taylor of Bolton|Baroness Taylor]], Minister for Defence Equipment and Support.<ref name=taxpayer_cost/>

=== Expansion ===

In January 2007, the company bought ''Analex'', a US corporation that provides high technology professional services, principally to the [[United States Government|US government]] and its agencies.<ref>{{cite web |url=http://www.defenseindustrydaily.com/qinetiq-buys-analex-corp-extends-us-footprint-02974/ |title=QinetiQ Buys Analex Corp., Extends US Footprint |work=Defense Industry Daily |date=22 January 2007 |access-date=3 April 2015}}</ref> It was originally incorporated in 1964 under the name ''Biorad'' and evolved into ''Hadron'', a US government systems consulting firm.<ref>{{cite encyclopedia |last = Dinger |first = Ed |encyclopedia = International Directory of Company Histories |title = Analex Corporation |date = 9 December 2003 |publisher =St. James Press |volume =74 |isbn =978-1-55862-549-5}}</ref>

In February 2007, the acquisition of ITS Corporation, a provider of [[Information Technology|IT]] services to the US government and its agencies, was announced.<ref>{{cite news |url=https://www.reuters.com/article/mergersNews/idUSWLB575320070301 |title=QinetiQ says to buy ITS Corp for up to $90&nbsp;million |work=Reuters |date=March 2007 |access-date=3 April 2015}}</ref> The disposal of Aerospace Filtration Systems (formerly part of Westar) was announced at the same time.<ref>{{cite web |url=http://eastbay.bizjournals.com/eastbay/othercities/stlouis/stories/2007/03/05/story6.html?b=1173070800%5E1425072 |title=Westar sells filtration unit to Donaldson for $39&nbsp;million |work=St. Louis Business Journal |access-date=3 April 2015}}</ref> In June of that year, QinetiQ announced that Apogen Technologies Inc., its US subsidiary, had completed the acquisition of 3H Technology LLC, a specialist IT company with US government and commercial clients.<ref>{{cite web |url = http://www.washingtontechnology.com/online/1_1/30942-1.html |archive-url = https://archive.today/20130209033235/http://www.washingtontechnology.com/online/1_1/30942-1.html |url-status = dead |archive-date = 9 February 2013 |title = Apogen buys 3H Technology |publisher = washingtontechnology.com |access-date = 23 November 2019}}</ref> In October, the company completed the acquisition of [[Boldon James|Boldon James Holdings Limited]], a UK-based provider of software for high end secure messaging, primarily for military, government and security customers worldwide.<ref>{{cite web |url=https://www.theregister.co.uk/2007/10/25/qinetiq_buys_boldon_james_mi5_secure_messaging/ |title=QinetiQ buys spooks' secure-messaging provider |work=The Register |access-date=3 April 2015}}</ref>

[[File:Qinetiq AgustaWestland AW105E Power arrives RIAT Fairford 10thJuly2014 arp.jpg|thumb|240px|QinetiQ [[AgustaWestland A109|AgustaWestland AW109E Power]] arrives for the 2014 [[Royal International Air Tattoo]], England]] 
In March 2007, QinetiQ spun off a new company, [[Omni-ID|Omni-ID Ltd]]; this entity specialises in the commercial opportunities for passive UHF radio-frequency identification (RFID) tags.<ref>{{Cite web|url=http://www.rfid-ready.com/20080211170/asset-tracking/omni-id-launches-breakthrough-rfid-technology-solution-for-asset-tracking-a.-supply-chain-management.html|archiveurl=https://web.archive.org/web/20091105113906/http://www.rfid-ready.com/20080211170/asset-tracking/omni-id-launches-breakthrough-rfid-technology-solution-for-asset-tracking-a.-supply-chain-management.html|url-status=dead|title="Omni-ID Launches Breakthrough Solution for Asset Tracking and Supply Chain Management."|archive-date=5 November 2009}}</ref> Prior to the spin off, a research team at QinetiQ had been active since the 1990s to develop new and more effective RFID technologies.<ref>{{cite web |url = https://www.omni-id.com/about-us/ |title = Our Company Story |publisher = Omni-ID |access-date = 23 November 2019}}</ref>

On 9 February 2007, the Carlyle Group sold its remaining 10.3% stake in the group at 205p per share, resulting in a £290 million return on its original investment.<ref>{{cite web |url=http://business.timesonline.co.uk/tol/business/industry_sectors/industrials/article1357830.ece |archive-url=https://web.archive.org/web/20070225021734/http://business.timesonline.co.uk/tol/business/industry_sectors/industrials/article1357830.ece |url-status=dead |archive-date=25 February 2007 |title=Industrials |work=[[The Times]] |access-date=3 April 2015}}</ref> During September 2008, the MoD sold its remaining 18.9% holding in QinetiQ at 206p per share, raising £254 million. The British government retained its 'special share', giving it control over any potential takeover.<ref>{{cite web |url=https://www.telegraph.co.uk/finance/markets/4676372/Taxpayers-net-254m-from-final-QinetiQ-sale.html |title=Taxpayers net £254m from final QinetiQ sale |first=Russell |last = Hotten |date=10 September 2008 |work=The Daily Telegraph |access-date=3 April 2015}}</ref> In February 2020, QinetiQ acquired military training specialist Newman & Spurr Consultancy Ltd for £14 million.<ref>{{cite web|url=https://www.sharesmagazine.co.uk/news/market/6770900/QinetiQ-acquires-training-simulation-group-Newman-Spurr-for-pound14m|title=QinetiQ acquires training, simulation group Newman & Spurr for £14m, 4 Feb 2020 07:06 {{!}} Shares Magazine|website=www.sharesmagazine.co.uk|access-date=2020-03-18}}</ref><ref>{{cite web|url=https://www.insidermedia.com/news/south-east/qinetiq-snaps-up-military-training-specialist|title=QinetiQ snaps up military training specialist|last=Media|first=Insider|website=Insider Media Ltd|date=7 February 2020 |access-date=2020-03-18}}</ref>

In November 2022, it was announced QinetiQ had completed the acquisition of the [[McLean, Virginia|McLean]]-headquartered provider of cybersecurity and data analytics software to US government agencies, Avantus Federal for $590 million USD.<ref>{{Cite web |title=QinetiQ seals USD590 million acquisition of Avantus Federal {{!}} Financial News |url=https://www.lse.co.uk/news/qinetiq-seals-usd590-million-acquisition-of-avantus-federal-16j41jjd8824pwv.html |access-date=2022-11-23 |website=www.lse.co.uk |language=en}}</ref>

=== Cyber security ===
During mid-2013, reports emerged that Chinese hackers had allegedly compromised sensitive military research being performed by QinetiQ.<ref>{{cite web |url=http://www.businessweek.com/news/2013-05-01/china-cyberspies-outwitting-u-dot-s-dot-stealing-vital-military-secrets |archive-url=https://archive.today/20130616015727/http://www.businessweek.com/news/2013-05-01/china-cyberspies-outwitting-u-dot-s-dot-stealing-vital-military-secrets |url-status=dead |archive-date=16 June 2013 |title=China Cyberspies Outwit U.S. Stealing Military Secrets |last1=Riley |first1=Michael |last2=Elgin |first2=Ben |date=1 May 2013 |work=Business Week |publisher=Bloomberg News |access-date=2 May 2013}}</ref> It was claimed that, between 2007 and 2010, QinetiQ's North American business was the subject of a [[cyber-attack]]. At the time of the incidents, the company said it disclosed all of its breaches to the responsible government agencies and these were resolved to their satisfaction.<ref>{{cite news|last=Elgin |first=Benjamin |url=https://www.bloomberg.com/news/2013-05-07/pentagon-retracts-statement-on-probe-of-qinetiq-hacking.html |title=Pentagon Retracts Statement on Probe of QinetiQ Hacking |newspaper=Bloomberg.com |publisher=Bloomberg |date=7 May 2013 |access-date=23 March 2014}}</ref> [[The Pentagon]] has stated that it still entrusts QinetiQ with sensitive defence technology.<ref>{{cite web |url=http://www.pogo.org/blog/2013/05/20130510-company-hit-by-chinese-hackers-still-a-trusted-fed-supplier.html |title=Company Hit By Chinese Hackers Still a Trusted Fed Supplier |work=Project on Government Oversight |access-date=3 April 2015}}</ref> The issue of cyber security affected other organisations; a Pentagon report stated that various US government agencies had been victims of cyberattacks.<ref>{{cite web |first=Jonathan |last=Marcus |url=https://www.bbc.co.uk/news/world-asia-china-22430224 |title=US accuses China government and military of cyber-spying |publisher=BBC News |date=7 May 2013 |access-date=23 March 2014}}</ref>

QinetiQ provides auditing and consultancy services on cyber security to third party businesses.<ref>{{cite web |url=https://www.crest-approved.org/member_companies/qinetiq-ltd/ |title=QinetiQ Ltd |publisher= CREST (International) |access-date=24 October 2012}}</ref> In 2011, the company announced the launch of a strategic collaboration with information security firm [[Nexor]] to pool their cyber security portfolios.<ref>{{cite web |url = https://www.nexor.com/qinetiq-and-nexor-announce-strategic-partnership/ |title = QinetiQ and Nexor announce strategic partnership |publisher = Nexor |date = July 2011}}</ref> During 2016, QinetiQ released a whitepaper on the topic, which identified employee behaviour as a major contributing factor in the majority of security breaches.<ref>{{cite web |url = https://www.qinetiq.com/news/2016/08/lack-of-process-and-security-culture-are-chief-factors-leaving-firms-open-to-cyber-attack |title = Lack of process and security culture are chief factors leaving firms open to cyber attack |publisher = Qineteq |date = 17 August 2016}}</ref> QinetiQ has partnered with mobile phone network provider [[Vodafone]] to support end-to-end internet security services.<ref>{{cite web |url = https://www.vodafone.com/business/news-and-insights/blog/gigabit-thinking/iot-security-is-not-just-a-case-of-one-and-done |title = IoT security isn't just a case of once and done |date = 6 September 2019 |publisher = [[Vodafone]] }}</ref>