MT&S provides advanced mission training services and software solutions that enhance the efficiency of satellite ground networks. It supports key US military programmes across the Army, Space Force, Air Force, Navy, Combatant Commands, and international partners.
This acquisition will increase Serco’s North American revenue to over $2 billion, with projected annual profits exceeding $200 million. It will also expand Serco’s customer base and create new opportunities for organic growth in both the US and international defence markets.
Mark Irwin, Chief Executive of Serco Group, highlighted the strategic importance of the acquisition, stating that it builds on the company’s track record of growth in North America. He emphasised that MT&S aligns with Serco’s commitment to delivering critical technology-enabled military solutions.
The deal strengthens Serco’s presence in the world’s largest defence market, reinforcing its role in supporting military training and satellite communications. The acquired expertise will enhance the readiness of armed forces through synthetic training, exercise simulation, and mission rehearsal capabilities.
Serco expects MT&S to generate approximately $300 million (£242 million) in revenue and $34 million (£27 million) in operating profit in 2025. The transaction is projected to be accretive to earnings per share from 2026, with a return on investment exceeding initial capital costs within two years.
The acquisition will increase Serco’s exposure to the defence sector, which will become the company’s largest market, accounting for around 40% of group revenue. North America will also represent about 50% of Serco’s underlying operating profit, reflecting strong growth potential.
Serco plans to leverage MT&S’s capabilities to enhance its service offerings globally. The acquisition provides opportunities to expand military training and satellite network solutions to new markets, including the UK, Australia, and Europe.
MT&S brings expertise in live, virtual, and constructive training environments, supporting mission readiness through simulation-based exercises. Its Distributed Mission Operations Network (DMON) enables secure connectivity between simulator platforms worldwide, allowing aircrews to train together in realistic virtual scenarios.
Additionally, MT&S develops software solutions that optimise satellite ground station performance, providing tools for communications planning and network monitoring. These capabilities align with Serco’s strategy of offering advanced technology solutions to military and government customers.
Completion of the transaction is expected in mid-2025, subject to regulatory approvals. Serco will fund the acquisition through existing cash and debt facilities, with the company’s financial position remaining within its target leverage range.
