Serco completes $327M acquisition of NG division

Herndon tech and management contractor Serco announced Tuesday that it has completed its $327 million acquisition of Northrop Grumman‘s mission training and satellite ground network communications software business, also known as MT&S.

MT&S provides the U.S. military with advanced mission training services, as well as software that makes satellite ground networks more efficient. It supports programs for the Army, Space Force, Air Force, Navy, Combatant Commands and international partners. It generates $300 million in annual revenues.

Serco said the acquisition, first announced in January, will enhance its presence in North America, bringing nearly 1,000 Northrop Grumman employees and expanding its business to over $2 billion in annual revenue. The company expects the additional expertise in digital engineering, software development, satellite ground communications software and training and mission simulation to allow it to expand the services it offers.

“We are honored to welcome the Northrop Grumman MT&S team to Serco,” Serco CEO Tom Watson said in a statement. “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.”

Headquartered in Herndon, Serco says it has approximately 10,000 employees. It is a wholly owned subsidiary of United Kingdom-based Serco Group, which has more than 50,000 employees in more than 20 countries. Serco Group reported 4.787 billion pounds — nearly $6.5 billion — in 2024 revenue.