Northrop's Mission Training Biz Just Got Acquired—By Who?

Serco, a provider of professional, technology, engineering, and management services, is acquiring Northrop Grumman’s mission training and satellite ground network communications software business (MT&S).

Adding to Serco’s existing defense capabilities, MT&S provides the U.S. military with advanced mission training services, and software that makes satellite ground networks more efficient.

With expertise in training services and software engineering, it supports programs across the U.S. Army, Space Force, Air Force, Navy, Combatant Commands and international partners. MT&S has a portfolio of U.S. defence service contracts with annual revenues of approximately $300 million.

The acquisition of MT&S will add scale to Serco in North America, growing its business beyond $2 billion of revenue.

The acquisition of Northrop Grumman’s mission training and satellite ground network communications software business represents a significant advancement in Serco’s mission-readiness offerings, integrating specialized expertise in synthetic training, exercise simulation, and ground satellite communications software solutions. Additionally, the combination will enable Serco to provide more robust, secure solutions that meet the increasingly complex needs of modern defense and space operations.

By acquiring this business, Serco will expand its footprint within the U.S. Department of Defense, strengthening partnerships with key customers such as the U.S. Army, Space Force, Air Force, Navy, and Combatant Commands.

The team of nearly 1,000 highly skilled professionals will join Serco’s workforce across North America, bringing expertise in areas such as digital engineering, software development, satellite ground communications software, and mission simulation. This will enable Serco to drive innovation in defense technologies while supporting national security objectives.

This acquisition supports Serco’s strategic growth goals within the international space sector. The MT&S business brings capabilities in space operations and services, including its 20+ year leadership in optimization software, enabling Serco to expand into high-growth international markets. This expertise aligns with Serco’s ambitions to strengthen its global space footprint, particularly in U.S., UK, Australian, and Middle Eastern markets.

The acquisition, subject to regulatory approvals, is expected to close in mid-2025, at a purchase price of $327 million.