U.K. defense technology company QinetiQ Group PLC (QQ.LN) Thursday announced that Chief Executive Graham Love will stand down next month and will be replaced by Leo Quinn, formerly chief executive of commercial security printer and paper maker De La Rue PLC (DLAR.LN).

Love, 55 years old, who has been at QinetiQ for eight years, and four years as CEO, is due to stand down Nov. 30, according to a statement from the company. No reason for his departure was given, but the succession has been planned for about a year.

Quinn, who is 52 years old and has a track record in Europe and the U.S. for turning around businesses and creating shareholder value, will join QinetiQ Nov. 16.

Neither Love nor Quinn was available for comment.

"Its great news for the company but bad news for existing management," said one analyst. He said that Quinn had a great track record, whereas QinetiQ hah been criticized for not generating shareholder returns.

Investors welcomed the news. At 0847 GMT, QinetiQ shares traded up 8 pence, or 5.7%, at 151 pence, making it the second-biggest gainer in the FTSE 250 index, which traded up 0.2%.

QinetiQ's management has been criticized by investors who have seen the value of the shares shrink as much as 30% since the initial public offering in 2006. The company's IPO price was 200 pence a share.

Quinn is the latest addition to QinetiQ's new management team. It already has appointed a new finance director and a new chairman is due to take up his post at the next annual general meeting.

He departed De La Rue, the world's largest banknote printer, Dec. 31 after reducing its exposure to the retail banking sector with the sale of its cash systems division. He also initiated a return of capital to shareholders.

Quinn previously held positions at Invensys PLC (ISYS.LN) and Honeywell International Inc. (HON) and sits on the board at Tomkins PLC (TOMK.LN).

-By Jonathan Buck, Dow Jones Newswires; +44 (0)207 842 8237; jonathan.buck@dowjones.com