Serco Inc. has entered into a definitive Asset Purchase Agreement to acquire Alion Science & Technology Corporation’s Naval Systems Business Unit for $225 million to strengthen its presence in naval support, modernization and sustainment, Serco announced on Thursday.
“Combining our existing C5ISR capabilities in ship, shore, satellite and radar modernization with the naval design and engineering capabilities of NSBU will make Serco a top-tier Navy services provider with a full-spectrum, design-integrate-support life cycle maritime offering,” said Dave Dacquino, chairman and CEO of Serco. “We targeted the acquisition to complete our portfolio, enter into the sustainment business and be in a better position to help our customers,” he added.
Serco is currently one of the leading providers of shipboard, shore and systems installation and upgrade services to the U.S. Navy. NSBU is a leading provider of naval ship and submarine design, systems and engineering services, production support and in-service sustainment, with annual revenues of $336 million and around 1,000 employees based at essential Naval facilities around the U.S., Canada and internationally.
With this acquisition, Serco will become a stronger end-to-end, full lifecycle, integrated maritime solutions (Design – Integrate – Support) provider for the U.S. Navy and other customers. In addition, this acquisition substantially increases Serco’s Canadian defense business and provides an international reach for the company to expand into all maritime areas in the coming years.
“The U.S. Navy and defense markets were extremely attractive to invest in for Serco,” said Craig Reed, senior vice president and chief growth officer of Serco. Our partnership is a great culture fit and opens up the potential for future career opportunities and chances to continue expanding our business in these markets,” Reed explained.
Serco’s C5ISR business unit and NSBU are extremely complementary. NSBU will retain its existing management team and staff and operate as a new Serco business unit.
NSBU is qualified under the U.S. Government’s foreign military sales program to provide shipboard engineering services to a range of allied services and is also supporting next-generation naval platforms including Unmanned Surface Vehicles (USVs) and Unmanned Underwater Vehicles (UUVs), which are expected to be areas of increasing investment by the Navy.
About Serco Inc.
Serco Inc. is a leading provider of professional, technology, and management services. We advise, design, integrate, and deliver solutions that transform how clients achieve their missions. Our customer-first approach, robust portfolio of services, and global experience enables us to respond with solutions that achieve outcomes with value.
Headquartered in Herndon, Virginia, Serco Inc. has approximately 6,000 employees and annual revenue of $1 billion. Serco Inc. is a wholly-owned subsidiary of Serco Group plc, a $4 billion international business that helps transform government and public services around the world.