Serco Completes Acquisition of MT&S from Northrop Grumman
Deal News | May 27, 2025 | FM Business Daily
Serco, an international service provider, has successfully acquired the Mission Training & Satellite (MT&S) business from Northrop Grumman for $327 million after obtaining all the necessary regulatory approvals. This acquisition positions Serco to significantly expand its capabilities and presence in North America, maximizing its defense and satellite communications services. MT&S, which generates $300 million in revenue annually, brings nearly 1,000 skilled personnel to Serco, focusing on digital engineering, software development, and mission readiness solutions. The integration of MT&S enhances Serco's offerings in synthetic training, exercise simulation, and satellite communications, facilitating global expansion into defense and space sectors in the US, UK, Australia, Europe, and the Middle East. Serco's Group Chief Executive, Anthony Kirby, emphasizes that this acquisition makes defense the company's largest sector, comprising 40% of Group revenue and adding significant scale to its operations, especially in North America which will account for half of the group's operating profit.
Sectors
- Defense
- Aerospace and Satellite Communications
Geography
- United States – The acquisition involves MT&S, a US-based defense business, and expands Serco's operation significantly in North America.
- United Kingdom – Serco, the acquiring company, is an international provider with significant operations in its home country, the UK.
- Australia – Serco plans to leverage the expertise from MT&S for expansion into various international markets, including Australia.
- Middle East – The acquisition enhances Serco's ability to offer solutions globally, including expanding its footprint in regions like the Middle East.
- Europe – Serco aims to extend its market reach with MT&S capabilities into European territories alongside its other regions.
Industry
- Defense – The article discusses the acquisition of a business providing mission training and satellite communications for the US military, highlighting the defense sector involvement.
- Aerospace and Satellite Communications – MT&S provides software for satellite ground networks, placing this acquisition squarely within aerospace and satellite communications industries.
Financials
- $327 million – The purchase price paid by Serco for the acquisition of MT&S from Northrop Grumman.
- $300 million – The annual revenue generated by MT&S prior to acquisition.
- $2 billion – The projected annual revenue for Serco's North American operations post-acquisition.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Serco | Bidding Company/Buyer | Company | An international service provider involved in defense, space, justice, immigration, healthcare, and citizen services sectors. |
| Northrop Grumman | Selling Company/Vendor | Company | A leading aerospace and defense company selling its MT&S business to Serco. |
| MT&S (Mission Training & Satellite) | Target Company | Company | A defense business specializing in mission training and satellite ground network communications, previously owned by Northrop Grumman. |
| Anthony Kirby | Group Chief Executive | Person | Serco's Group Chief Executive who commented on the acquisition and its strategic implications. |