Serco Group PLC announced Thursday that its subsidiary, Serco Inc., has agreed to acquire Northrop Grumman Corp.’s mission training and satellite ground network communications software business (MT&S) for $327 million. The acquisition will bolster Serco’s presence in the defense sector at a time when global geopolitical tensions continue to rise.
The U.K.-based public services company said the purchase will be funded entirely in cash from its reserves and banking arrangements.
Regulatory Approvals and Expected Completion
The transaction, expected to close in mid-2025, remains subject to regulatory approval from:
- The Committee on Foreign Investment in the United States (CFIUS)
- The Hart-Scott-Rodino Antitrust Improvements Act
- The Defense Trade Controls Policy, which safeguards U.S. military technology
Notably, Serco shareholders’ approval is not required for the deal to proceed.
Serco CEO Highlights Growth Potential
Serco CEO Mark Irwin called the acquisition an “excellent opportunity” to strengthen the company’s global footprint.
