Qinetiq secures Cyveillance

Defence giant Qinetiq North America is to acquire Arlington, Virginia-based Cyveillance, a provider of online monitoring technology that identifies and tracks data in cyberspace, for $40m (£26.5m).

There will be potential further consideration of up to a maximum of $40m depending on the company’s financial performance during a two-year period ending on 31 December 2010.

Cyveillance is a venture-capital backed company with 75 employees that has been backed by venture-capital fund partners including Lazard Technology Partners, ABS Capital Partners, New Enterprise Associates and Black Rock.

The company develops and operates online monitoring technology for a range of commercial customers on multi-year subscription fee contracts.

In the year to 31 December 2008, Cyveillance generated revenues of $10.4m and recognised an operating loss of $1.6m. Gross assets of the company were $5.3m.

Under terms of the agreement, pending regulatory approval, Cyveillance will become a Qinetiq North America subsidiary. The acquisition is expected to close in June 2009.