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Serco Completes Acquisition of Northrop Grumman's Mission Training & Satellite Ground Network Communications Software Business

1. Serco acquires Northrop Grumman’s mission training software for $327 million. 2. The acquisition enhances Serco’s North American presence and revenue capabilities. 3. Nearly 1,000 Northrop employees join Serco, boosting technical expertise. 4. Serco aims to enhance U.S. military mission readiness through this acquisition. 5. The deal supports Serco's growth in the international space sector.

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FAQ

Why Neutral?

Historically, acquisitions can lead to volatility but do not guarantee immediate price appreciation. Previous acquisitions by defense contractors have shown mixed results affecting stock prices generally within a neutral zone.

How important is it?

While this acquisition affects market dynamics, it aligns more with Serco's strategies than NOC's direct operations.

Why Long Term?

The long-term impact relies on successful integration and revenue growth, which often takes time to materialize.

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HERNDON, Virginia, May 27, 2025 (GLOBE NEWSWIRE) -- Serco Inc., a provider of professional, technology, and management services, announced today the completion of its acquisition of Northrop Grumman’s mission training and satellite ground network communications software business (MT&S), having secured all necessary regulatory approvals and satisfied other customary closing conditions. The acquisition of the business was finalized at a purchase price of $327 million. This strategic acquisition enhances Serco’s presence in North America, expanding its business to over $2 billion in annual revenue. It also marks a significant advancement in Serco’s mission-readiness solutions, integrating specialized expertise in synthetic training, exercise simulation, and ground satellite communications software solutions. The incoming business portfolio empowers Serco to offer more robust and secure solutions that address the increasingly complex demands of modern defense and space operations. The acquired Northrop Grumman business segment generates annual revenues of approximately $300 million, and nearly 1,000 experienced professionals will join Serco, contributing expertise in digital engineering, software development, satellite ground communications software, training, and mission simulation. Integrating this business expands the live and virtual training capabilities that Serco can offer U.S. and international customers. The acquisition also supports Serco’s growth goals within the international space sector, where the Company continues to build its global space footprint in regions such as the UK, Australia, and Middle East. “We are honored to welcome the Northrop Grumman MT&S team to Serco,” said Tom Watson, CEO of Serco Inc.“ The integration of our existing and new capabilities in live and virtual training, and space markets, positions Serco to compete for larger and more complex projects. We have complete confidence that Serco is now further aligned to support the U.S. military’s mission to enhance warfighter readiness. Read more about the acquisition, along with Serco's expanded capabilities in mission training and satellite ground network communications software business, here.  About Serco Inc.Serco Inc. is a leading provider of professional, technology, engineering, and management services. We advise, design, integrate, and deliver solutions that transform how clients achieve their missions. Our customer-first approach, robust portfolio of services, and global experience enable us to respond with solutions that achieve outcomes with value. Headquartered in Herndon, Virginia, Serco Inc. has approximately 10,000 employees and annual revenue of $2 billion. Serco Inc. is a wholly-owned subsidiary of Serco Group plc, a $5 billion international business that helps transform government and public services around the world. More information about Serco Inc. can be found at www.serco.com/na.

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