WALTHAM, Mass., 1 August 2005. Foster-Miller, Inc., the U.S.-based technology development and robotics company which is part of the QinetiQ North America group of companies, announced today that it is acquiring Planning Systems Inc. (PSI) for $42 million.
PSI is a 350 employee, diversified high technology company based in Reston, Va. Founded in 1972, PSI provides applied science and systems engineering expertise; information technology applications and solutions; and custom products to the federal government and commercial clients. PSI's revenues for fiscal year 2004 were $44.6 million.
Foster-Miller is a wholly owned subsidiary of QinetiQ North America, a leading global defense technology and security company. The acquisition is particularly designed to accelerate Foster-Miller's growth in the commercial, defense, security and transportation markets, and will offer wider business development opportunities for other parts of the QinetiQ group, both in North America and in the UK. Fiscal year 2004 revenues for Foster-Miller were $120 million.
PSI's engineering expertise and innovative information technology capabilities should allow Foster-Miller to significantly grow the breadth and depth of its products and services into existing and new markets. PSI has a significant track record of success working with key customers such as the Department of Defense and other agencies of the federal government, as well as state municipalities and the private sector.
"This acquisition provides Foster-Miller with significant strategic value. The companies' combined scientific and engineering expertise allows us to offer our customers a higher level of proficiency and service that would be impossible to achieve as separate organizations," said William Ribich, CEO and president of Foster-Miller, Inc. "PSI has advanced technical expertise in sensor development and software systems. This expertise will enhance Foster- Miller's platform of technologies. Both Foster-Miller's and PSI's customers can expect to benefit from the combination of skills this acquisition creates."
"PSI and Foster-Miller have had a long-standing strategic relationship and are presently teamed on a space-based radar system development project," stated PSI CEO and president Alan Friedman. "We expect to greatly benefit from Foster-Miller's product skills in taking numerous PSI technologies to the next level of applications and sales. We will use the expanded profile of PSI to develop growth opportunities in both current and new markets. PSI views this opportunity as a natural extension of our work together."
"This is an important next step in building our business in North America," commented Graham Love, CEO of QinetiQ North America. "Alan and his team run a fine company, and we are delighted to have persuaded them to join us."
Under the terms of the agreement, PSI will maintain its name and operate as a wholly-owned subsidiary of Foster-Miller, Inc. The acquisition by Foster-Miller brings the total employee base to 675 and increases the company's presence to locations in fourteen states.
Foster-Miller, Inc. is an engineering, development and manufacturing company located in suburban Boston, Mass., with additional offices in Albany, N.Y. and Washington, D.C. It became an independent, wholly owned subsidiary of QinetiQ North America Inc., in November 2004. The firm was founded almost 50 years ago by three graduates of MIT who believed there was a need for a company that could solve clients' difficult technical problems through first-class analysis and design. The company maintains a staff of more than 300 mechanical, electrical, thermal, chemical, nuclear, aerospace, software and materials engineers as well as metallurgists, physicists, mathematicians, chemists, biologists and support staff working in the areas of robotics, advanced materials, aerospace, homeland security, power systems, biotechnology, medical and life sciences, and transportation. For more information, see www.foster-miller.com.
Planning Systems Inc. (PSI) develops innovative technologies with real-world applications for network centric programs, homeland security and the commercial sector. Cutting-edge technology development areas include multi-level security networks, gunshot location, precision military air drop, data mining, on-the-move landmine and IED detection, precision vibration control, and speech-capable PDAs. With a 33- year track record, 14 U.S. offices and extensive scientific, engineering, and information technology expertise, PSI adds significant value to mission- critical projects. PSI combines technology innovation and customer responsiveness with the discipline and depth to successfully lead key projects in government and industry. For more information, see www.plansys.com.
QinetiQ (pronounced ki' ne tik as in 'kinetic energy') is a global defense technology and security company with a turnover of around $2bn. Founded in July 2001 from the majority of the Defence Evaluation and Research Agency (DERA), the laboratories of the U.K. MOD, QinetiQ today has grown internationally, with 11,500 employees in the U.K. and U.S., many of them internationally acclaimed experts, providing government and commercial customers sophisticated resources to create, evaluate, test, and deliver technology-based services, solutions and products.
As part of its growing security business recently launched products include: Tarsier -- a radar system that identifies debris on an airport runway; BorderWatch -- which can see into vehicles to identify possible stowaways; The MillimetreWave Portal -- a people screening system that can identify concealed weapons. Ferroguard -- a man-portable metal detection system; and X-net -- a system to stop vehicles being driven through checkpoints.
QinetiQ has developed a significant overseas customer base and has established a U.S. sales operation in Crystal City, near Washington D.C. to forge closer links with this potentially significant market. In November 2004, it also acquired the businesses of Foster-Miller, Inc. and Westar Aerospace & Defense Group. Both are wholly-owned subsidiaries. For more information, see www.qinetiq.com.