QinetiQ Group Plc, a London-based defence consultancy business, has acquired Cyveillance, a US provider of online monitoring technology, for $40 million (£26.6 million).

QinetiQ Group Plc, a London-based defence consultancy business, has acquired Cyveillance, a US provider of online monitoring technology, for $40 million (£26.6 million).

Cyveillance is based in Arlington, Virginia, and is backed by private equity firms Lazard Technology Partners, ABS Capital Partners, New Enterprise Associates and BlackRock. Cyveillance reported revenues of $10.4 million and an operating loss of $1.6 million in 2008.

Graham Love, QinetiQ Group CEO, said: “Cyveillance’s position in online monitoring technology builds on our existing capability in the growing US cyber security market. We believe Cyveillance is well positioned to benefit from the increased importance that the US administration is placing on addressing cyber security as the threat of new and increasingly sophisticated online threats increases.”

QinetiQ reported robust trading figures, with revenues up 13.9 per cent to £727.4 million, and pre-tax profits up 41.3 per cent to £36.6 million.