16th Feb 2021 08:17
(Alliance News) - Serco Group PLC on Tuesday announced it has agreed to acquire Whitney, Bradley & Brown Inc, a provider of advisory, engineering and technical services to the US Military.
The outsourcer bought the company for USD295 million from an affiliate of Miami, Florida-based private equity firm HIG Capital.
The Hampshire-based Serco said the acquisition will increase the "scale, breadth and capability" of its US defence business, providing a "strong" platform from which to address all major segments of the US defence services market.
Serco said the purchase will be immediately accretive to earnings and will be funded through existing debt facilities. It is expected to complete in the second quarter of 2021, subject to regulatory approvals.
The company said it expects WBB to generate revenue of around USD230 million during 2021, and earnings before interest, tax, depreciation and amortisation of USD29 million.
In 2020, WBB generated revenue of USD212 million, and its Ebitda was USD29 million.
"Growing the scale, reach and capability of Serco in the largest defence market in the world is one of our strategic objectives, and the acquisition of WBB significantly advances that strategy. Following the acquisition of the Naval Systems Business Unit of Alion in 2019, which increased the size of our US Navy business by 70%, WBB takes our North American defence revenues to around USD1.1 billion and gives us credible positions in other parts of the market including Air Force, Space Force, Army, the Missile Defense Agency and the Office of the Secretary of Defense," said Serco Group Chief Executive Rupert Soames.
"It creates a powerful platform for future growth and brings us impressive new capabilities in areas such as advanced data analytics, artificial intelligence & machine learning, and precision navigation and timing, along with a team of renowned subject matter experts covering a wide range of disciplines that can be deployed across our business," he added.
Shares in Serco were up 6.0% at 126.90 pence in London on Tuesday morning.
By Zoe Wickens; [email protected]
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