Serco, the international provider of critical government services, has today announced it has completed the acquisition of Northrop Grumman’s mission training and satellite ground network communications software business (MT&S), having all necessary regulatory approvals. The acquisition was finalised at a purchase price of $327 million (£245 million).
MT&S provides the US military with advanced mission training services, and software that makes satellite ground networks more efficient, and generates annual revenues of approximately $300 million. Nearly 1,000 highly skilled individuals will join Serco, contributing invaluable expertise in digital engineering, software development, satellite ground network communications software, training and mission simulation.
This strategic acquisition enhances Serco’s presence and scale in North America, expanding its business there to over $2 billion in annual revenue. It also marks a significant advancement in Serco’s mission-readiness solutions, integrating specialised expertise in synthetic training, exercise simulation, and ground satellite communications software solutions. The incoming business portfolio empowers Serco to offer highly technical and secure solutions around the world that address the increasingly complex demands of modern defence and space operations.
Integrating this business expands the live and virtual training capabilities that Serco can offer its customers, allowing Serco to export MT&S’ best-in-class military training and satellite ground network communications software capabilities to existing defence customers and new, international markets. The acquisition also supports Serco’s growth goals within the global space sector, where Serco continues to build its space footprint in regions such as the US, the UK, Australia, Europe and the Middle East.
Anthony Kirby, Serco’s Group Chief Executive, 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.
“My colleagues and I are delighted to welcome around 1,000 highly experienced, skilled employees from Northrop Grumman to our business in North America.”
