UK firm acquires Westar for $140M

Company officials say only changes will be positive

Tuesday, September 14, 2004

By BRIAN LAWSON

Times Business Writer brianl@htimes.com

Westar Aerospace & Defense Group Inc., which employs about 350 people in Huntsville, was acquired for $140 million Monday by a British defense company, but company officials said the only changes will be positive.

Rob Topping, Westar's president, said the acquisition of Westar by UK-based QinetiQ, will mean additional company resources, but no layoffs, changes in benefits or other major changes that often follow a merger.

Topping said Westar will be a flagship, autonomous division of QinetiQ, meaning it will retain all its practices, employees and even a separate board of directors.

"We couldn't be more pleased," Topping said. "We'd been approached by a number of defense companies who wanted to buy us. But each time, I felt like it would change our culture or cover up our logo. It is unique, but maintaining our autonomy was a prerequisite for us, and QinetiQ told us they didn't want us to change anything."

David Anderson, president and chief executive of QinetiQ North America said the two companies are a "truly remarkable fit. "Westar's record of 38 percent annual growth during the last five years has been tremendous, and we want that team to continue its success," Anderson said.

Westar, which provides computer modeling, simulation, information technology, and a variety of other products for defense and related work, reported annual revenue of about $140 million and has 900 employees.

QinetiQ has more than 9,000 employees and was founded by the United Kingdom's Ministry of Defense.

Topping said the technology that QinetiQ has developed will prove a tremendous resource for Westar in serving defense customers, particularly in finding rapid solutions for problems encountered by the U.S. Department of Defense.

"I helped build this company from the ground up," Topping said. "We invested our time, our money and our passion into the success and viability of this company. Given our investment and the fact that we built the company the way we did, this is entirely consistent with our value set and strategy and goals."

The deal is expected to close by year's end, pending regulatory approval.




UK firm acquires Westar for $140M Company officials say only changes will be positive Tuesday, September 14, 2004 By BRIAN LAWSON Times Business Writer brianl@htimes.com Westar Aerospace & Defense Group Inc., which employs about 350 people in Huntsville, was acquired for $140 million Monday by a British defense company, but company officials said the only changes will be positive. Rob Topping, Westar's president, said the acquisition of Westar by UK-based QinetiQ, will mean additional company resources, but no layoffs, changes in benefits or other major changes that often follow a merger. Topping said Westar will be a flagship, autonomous division of QinetiQ, meaning it will retain all its practices, employees and even a separate board of directors. "We couldn't be more pleased," Topping said. "We'd been approached by a number of defense companies who wanted to buy us. But each time, I felt like it would change our culture or cover up our logo. It is unique, but maintaining our autonomy was a prerequisite for us, and QinetiQ told us they didn't want us to change anything." David Anderson, president and chief executive of QinetiQ North America said the two companies are a "truly remarkable fit. "Westar's record of 38 percent annual growth during the last five years has been tremendous, and we want that team to continue its success," Anderson said. Westar, which provides computer modeling, simulation, information technology, and a variety of other products for defense and related work, reported annual revenue of about $140 million and has 900 employees. QinetiQ has more than 9,000 employees and was founded by the United Kingdom's Ministry of Defense. Topping said the technology that QinetiQ has developed will prove a tremendous resource for Westar in serving defense customers, particularly in finding rapid solutions for problems encountered by the U.S. Department of Defense. "I helped build this company from the ground up," Topping said. "We invested our time, our money and our passion into the success and viability of this company. Given our investment and the fact that we built the company the way we did, this is entirely consistent with our value set and strategy and goals." The deal is expected to close by year's end, pending regulatory approval. Copyright 2004 al.com. All Rights Reserved.