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Serco has announced the successful acquisition of Northrop Grumman’s mission training and satellite ground network communications software (MT&S) business, following the necessary regulatory approvals.
The deal, valued at approximately AU$513.5 million, marks a major expansion for Serco in North America. MT&S supplies the United States military with advanced mission training services and software that enhances the efficiency of satellite ground networks.
The business generates around $465 million in annual revenue and brings with it nearly 1,000 highly skilled staff, whose expertise spans digital engineering, software development, satellite ground communications and mission simulation.
The acquisition strengthens Serco’s footprint in North America, lifting its total annual revenue in the region to over AU$3.1 billion. It also positions Serco to deliver enhanced solutions in synthetic training, exercise simulation and satellite ground network software – capabilities increasingly vital to meet the demands of modern defence and space operations.
“The acquisition not only expands Serco’s capacity for live and virtual military training but also enables us to offer MT&S’ best-in-class software solutions to existing defence customers and new international markets,” the company said.
Anthony Kirby, Serco’s group chief executive, described the deal as a pivotal step in the company’s strategic journey, saying, “Following this acquisition, defence will become our largest sector, accounting for around 40 per cent of group revenue, with operations spanning all our major markets. North America will also represent approximately 50 per cent of the Group’s underlying operating profit.”
Serco highlighted the strategic value of the acquisition in supporting its continued growth in the global space sector, with an expanding presence in the US, the UK, Australia, Europe and the Middle East.
Kirby added, “This is our fifth defence acquisition since 2019 and it strengthens our position for future organic growth, adding scale, a broader suite of solutions and building on the excellent business wins and retentions we’ve achieved in defence in 2025. My colleagues and I are delighted to welcome nearly 1,000 highly experienced, skilled employees from Northrop Grumman to Serco in North America.”
The move underscores Serco’s strategic focus on defence and space technologies, and its ambition to be a key player in delivering secure, cutting-edge solutions for customers across the globe.
