Serco Inc, a subsidiary of Serco Group plc, announced on January 29 that it has agreed to acquire Northrop Grumman’s mission training and satellite ground network communications software business (MT&S) for $327M in cash. The business provides the US military with advanced mission training services, and software that makes satellite ground networks more efficient. With expertise in training services and software engineering, and a track record of innovation, it supports programs across the US Army, Space Force, Air Force, Navy, Combatant Commands and international partners.
MT&S will build additional scale for Serco in North America, growing our business to beyond $2bn of revenue and $200m of profit. It brings new capabilities and access to a broader base of customers, which will provide further opportunities for Serco to grow organically in both North America and internationally.
Commenting on the acquisition, Mark Irwin, Serco Group chief executive, said,
“We have approximately doubled revenue and more than trebled profit in Serco’s North America business in recent years through a successful combination of organic growth and strategic acquisitions. MT&S provides an excellent opportunity to continue that success.”
Irwin continued, “The acquisition increases our scale, capabilities and growth potential in US defense, the largest defense market in the world, as well as providing solutions we can offer to our customers worldwide. The acquired capability delivers comprehensive, critical, technology-enabled services fully aligned to the US military’s focus on enhancing warfighting standards and readiness through solutions that are both efficient and effective.”
Source: Serco
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By Loren Blinde
January 30, 2025
