Serco acquires MT&S

Image courtesy Serco

Adding to Serco’s existing defence capabilities, the MT&S business provides the US military with advanced mission training services and software that makes satellite ground networks more efficient.

With expertise in training services and software engineering and a track record of innovation, it supports programmes across the US Army, Space Force, Air Force, Navy, Combatant Commands and international partners. It has annual revenues of approximately $300 million (£242 million).

MT&S will add scale to Serco in North America, growing our business there to beyond $2 billion of revenue and $200 million of profit and brings new capabilities and access to a broader base of customers.

Mark Irwin, Serco Group Chief Executive said: “We have approximately doubled revenue and more than trebled profit in Serco’s North America business in recent years through a successful combination of organic growth and strategic acquisitions. MT&S provides an excellent opportunity to continue that success.

“The acquisition increases our scale, capabilities and growth potential in US defence, the largest defence market in the world, as well as providing solutions we can offer to our customers worldwide. 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.

“We look forward to welcoming nearly 1,000 new colleagues from MT&S to Serco and are excited to add their knowledge and experience to our work supporting the US Department of Defense’s enduring mission to provide the combat-credible military forces needed to protect the security of the nation.”

MT&S will provide further opportunities for Serco to grow organically in both North America and internationally. The acquisition, subject to regulatory approvals, is expected to close in mid-2025, at a purchase price of $327 million (£264m).