The company Qinetiq was created in 2001 when the Ministry of Defence split its defence testing and research agency in two, retaining its science and technology laboratory but spinning off the larger evaluation and non-nuclear elements and bringing in Carlyle, the American private equity investor, to buy a stake.
After a messy set of rows about its valuation, fees for advisers and large share windfalls for senior executives, Qinetiq was listed on the stock exchange at 200p a share in 2006. Its valuation of £300 million has since swollen to more than £1.6 billion.
At the centre of the newly formed Qinetiq was a 25-year partnership agreement, initially signed with the MoD in 2003 (so due to expire in 2028), under which the company provided