Derrick Henry
Serco Inc. has agreed to acquire Northrop Grumman’s mission training and satellite ground network communications software, or MT&S, business.
The acquisition deal involves a cash payment of $327 million and will deliver a portfolio of U.S. defense service contracts with annual revenues of around $300 million, Serco said Thursday. Currently, the MT&S business provides advanced mission training support for a more efficient operation of the U.S. military’s satellite ground networks.
Expanding Serco’s Existing Defense Market Footprint
According to Tom Watson, Serco Inc. CEO, the MT&S integration will expand the company’s defense market footprint and bolster its existing collaboration with key customers, including the Army, Space Force, Air Force, Navy and combatant commands. “Upon closing, we look forward to the positive impact and invaluable expertise these new colleagues will bring to our organization in areas such as digital engineering, software development, satellite ground communications software and mission simulation,” noted the two-time Wash100 Award recipient.
“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,” added Serco Group CEO Mark Irwin.
Adding Scale to North American Operations
The acquisition is expected to be completed in mid-2025, subject to regulatory approvals. According to Serco, MT&S will add scale to its North American operations, increase its revenue beyond $2 billion and deliver greater value to customers.
