Serco Inc, a US subsidiary of government services provider Serco, announced on 27 May 2025 that it has completed the acquisition of Northrop Grumman’s mission training and satellite ground network communications software business (MT&S) following receipt of the necessary regulatory approvals.
MT&S provides the US military with advanced mission training services and software that enhances satellite ground network efficiency. The company is expected to generate revenue of around USD 300 million (EUR 265 million) and underlying operating profit of USD 34 million before transaction and integration costs.
Following completion of the acquisition, Serco will benefit from approximately seven months of MT&S’ financial performance in 2025, contributing an estimated USD 175 million of revenue and USD 20 million of underlying operating profit, with transaction and integration costs expected to be around USD 10 million. Serco added that the transaction will be mid-single digit accretive to underlying earnings per share in 2026: the first full year of ownership.
Anthony Kirby, group chief executive for Serco, noted in a company press release, “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,” he added.
