Defence Security

Serco to acquire NSBU

Posted 23 May 2019

Hampshire based Serco Group today announced that it has agreed the acquisition of US defence contractor Naval Systems Business Unit (NSBU) – which provides naval designs, systems engineering and production support services to the US Navy and the Royal Canadian Navy – from Alion Science & Technology Corporation, for $225m.

The acquisition is seen as a significant addition to the capability and scale of Serco's defence business.

Courtesy Serco

Rupert Soames (above), Serco Group Chief Executive, said: “This is an important step for Serco which materially adds to the scale and capability of our US defence business and in particular to the maritime support segment. Serco employs some 6,000 people in North America, of whom 2,300 work in defence and has been providing services to the US Navy for nearly 30 years, so we know this market well.

"NSBU, which employs around1,000 people ,brings world-class ship and submarine design, systems, and engineering services, productionsupport and in-service sustainment capabilities, which are highly complementary to Serco’s existing skills in ship modernisation, hardware integration and naval logistics. The combined business will be a top tier supplier of services to the US Navy, which has recently announced plans to increase the fleet from 280 to 355 ships by 2034 and we see a long-term and growing demand for the capabilities that the combination of Serco and NSBU will be able to provide."

Serco provides support services across a range of sectors, including security and defence. For example, it delivers lifecycle sustainment support for the US Naval Facilities Engineering Command's (NAVFAC) command, control, communications, computers and intelligence (C4I) systems at locations worldwide, whilst in the UK it provides operation and maintenance support to the Solid State Phased Array Radar (SSPAR), part of the UK/US Ballistic Missile Early Warning System, at RAF Fylingdales, North Yorkshire on behalf of the MoD and runs several UK prisons.

The acquisition, expected to close in the second half of 2019, is subject to regulatory approvals.