Serco, the Hampshire-headquartered outsourcing giant, has announced that its US subsidiary has completed its acquisition of the Mission Training and Satellite Ground Network Communications Software (MT&S) business from US defence firm Northrop Grumman.
The deal is projected to generate revenues of approximately £225 million and underlying operating profits of £25 million for Serco in 2025, before taking into account transaction and integration costs, which are estimated to be around £8 million.
MT&S specialises in providing mission training services to the US military, alongside software designed to enhance the efficiency of satellite ground networks.
Serco’s Group Chief Executive, Anthony Kirby, said: “Following this acquisition, defence will be our largest sector, representing approximately 40% of group revenue, with operations in all our major geographies. North America will represent approximately 50% of group underlying operating profit. This acquisition, our fifth in defence since 2019, strengthens our position for future organic growth through increased scale, our breadth of solutions, and builds upon the excellent new business and retentions we have secured in defence so far in 2025.”
Serco is expected to benefit from roughly seven months of MT&S’s financial performance in 2025, which is estimated to contribute around £130 million in revenue and £15 million in profit.
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