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Defence deals snapshot: LinQuest acquires TMC design; QuanTitech nets SEG

13 Jan 2021 (Last Updated January 13th, 2021 13:00)

In the first working week of January, aerospace, defence and security deals tracked by GlobalData were down 15% compared to the same period for the previous year; six deals were recorded including the acquisition of TMC Design by LinQuest.

The first week of January saw deals activity in the sector remain relatively steady, with a total of six deals being recorded, compared to seven deals in the same period of 2020, according to data collected by market intelligence company GlobalData.

Despite the ongoing effects of the pandemic, the defence and security market has stayed relatively steady over the previous year even as commercial aerospace companies saw a decline due to the dramatic slowdown of commercial air travel.

In many cases, companies working across both defence and commercial aerospace have seen their businesses supported by a steady defence market.

One of the most notable deals of the past week was LinQuest’s acquisition of TMC Design for an undisclosed amount.

Linquest, a space systems technology provider, announced the purchase of TMC Design, an engineering, development and integration company, on 5 January. In a statement, both companies said the transaction ‘enhances both companies’ ability to address the rapidly evolving requirements of technology-enabled multi-domain operations as a critical element of the US national defence strategy.’

LinQuest CEO Tim Dills said: “TMC Design’s corporate values and proven track record of innovation and mission focus strongly complement LinQuest’s customer-first approach and core competencies.

“This combination will create a compelling suite of solutions to provide all of our customers with mission-essential capabilities addressing many of our country’s most challenging national security threats.”

Under the terms of the deal, TMC Design and its leadership will begin operating as a LinQuest business unit.

TMC Design CEO Chris Ham said: “This move marks a strategic investment in support of TMC Design’s capabilities and culture.

“Partnering with LinQuest will preserve these critical attributes while equipping us with additional resources and complementary technical capabilities to better serve the customers who have relied on us for so long.”

On 4 January, QuantiTech announced its purchase of Systems Engineering Group (SEG), a threat engineering and modelling and simulation services provider to the US Government. Under the terms of the deal, QuantiTech said SEG’s management team and employees would continue with the business.

QuantiTech board chair Randy Cash said: “We are extremely excited to welcome SEG to the QuantiTech family.

“This combination brings together two companies with an extraordinary depth of talent and expertise in high-end engineering. By strengthening our capabilities in the missile defence, hypersonics, and intel markets, we will be even better positioned to continue serving the important missions of the US Government.”

SEG’s primary business is the provision of physics-based ‘modelling, engineering, and analytics’ used to support weapons and missile system development.

QuantiTech provides engineering services to several branches of the US military as well as NASA.

SEG president Michael Anderson said: “As announced this past summer, SEG has been looking to partner with a new parent organisation that is more strategically focused on government technical services.

“We are thrilled to have found that partner in QuantiTech and are energised by the opportunities created through this combination. QuantiTech’s complementary customers and capabilities will allow us to expand our presence as a leader in threat engineering and modelling and simulation.”

Other deals completed during the week included WGS properties netting a two-thirds stake in Olavsvern Group, Hermetic Solutions Group purchasing Cristek, GracoRobers acquiring Able Aerospace Adhesives, and Fairbanks Morse purchase of Ward Leonard.