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Serco Completes Strategic Acquisition of MT&S to Boost Defense Sector

Story Highlights
  • Serco has acquired Northrop Grumman’s MT&S business, enhancing its defense sector.
  • The acquisition will contribute $175 million in revenue and boost Serco’s growth in defense.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
Serco Completes Strategic Acquisition of MT&S to Boost Defense Sector

Elevate Your Investing Strategy:

The latest update is out from Serco Group plc ( (GB:SRP) ).

Serco Group plc has completed the acquisition of Northrop Grumman’s mission training and satellite ground network communications software business, MT&S, through its US subsidiary, Serco Inc. This acquisition is expected to significantly enhance Serco’s defense sector operations, which will now account for approximately 40% of the company’s revenue. The acquisition is projected to contribute $175 million in revenue and $20 million in underlying operating profit for 2025, with the transaction being accretive to earnings per share by 2026. The acquisition strengthens Serco’s position for future organic growth and increases its scale and breadth of solutions in the defense industry.

The most recent analyst rating on (GB:SRP) stock is a Buy with a £225.00 price target. To see the full list of analyst forecasts on Serco Group plc stock, see the GB:SRP Stock Forecast page.

Spark’s Take on GB:SRP Stock

According to Spark, TipRanks’ AI Analyst, GB:SRP is a Outperform.

Serco Group plc’s overall stock score reflects a balance of strengths and challenges. Strong cash flow management and promising corporate events support the stock’s outlook, but profitability challenges and high valuation metrics present notable risks. Technical analysis suggests a stable trend, indicating cautious optimism for investors.

To see Spark’s full report on GB:SRP stock, click here.

More about Serco Group plc

Serco Group plc is a global provider of services primarily to governments, with operations spanning defense, space, migration, justice, healthcare, mobility, and customer services. The company employs over 50,000 people and offers capabilities in service design and advisory, resourcing, complex program management, systems integration, case management, engineering, and asset and facilities management.

Average Trading Volume: 2,405,963

Technical Sentiment Signal: Strong Buy

Current Market Cap: £1.89B

See more data about SRP stock on TipRanks’ Stock Analysis page.

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