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Serco Group plc (LSE:SRP) has finalized the acquisition of Northrop Grumman’s Mission Training and Satellite (MT&S) ground network communications software division through its U.S.-based subsidiary, Serco Inc. This strategic move marks a major enhancement of Serco’s presence in the defense sector, which is now expected to contribute around 40% of the group’s total revenue.
The acquisition is forecasted to deliver $175 million in revenue and $20 million in underlying operating profit in 2025, with the deal anticipated to be accretive to earnings per share by 2026. The integration of MT&S broadens Serco’s defense offerings and strengthens its position for continued organic growth by expanding both the scale and diversity of its services in the industry.
Serco’s Market Position and Outlook
Serco continues to demonstrate solid financial management, particularly in terms of cash flow, while recent strategic actions such as this acquisition add positive momentum. However, investors should be mindful of ongoing profitability pressures and valuation concerns. From a technical standpoint, market indicators point to a steady trend, suggesting cautious optimism.
About Serco Group plc
Serco Group plc is a global service provider, predominantly serving public sector clients. With a workforce exceeding 50,000, Serco operates across diverse areas including defense, space, healthcare, immigration, justice, transportation, and citizen services. The company offers a wide range of expertise in areas such as complex program delivery, systems integration, engineering, facilities management, and advisory services.
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Average Daily Trading Volume: 2,405,963
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Technical Sentiment: Strong Buy
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Market Capitalization: £1.89 billion
