Serco to acquire Alion's naval systems business in $225mn deal

Virginia-based professional, technology and management services company Serco Inc has announced its entrance to an agreement to acquire the Naval Systems Business Unit (NSBU) of the Alion Science & Technology Corporation.

The deal, which will see Serco pay US$225mn for Alion’s NSBU, which includes the company’s Canadian operations and several related contract operations. The NSBU specializes in integrated ship and systems design, including naval architecture, and marine, structural and systems engineering, and provides life-cycle naval fleet support and weapon platform services including program management, production support, fleet readiness and operational sustainment.

The company has annual revenues of $336mn and around 1,000 employees based at essential Naval facilities around the U.S., Canada and internationally.

SEE ALSO: 

• Chigago advertising agency receives $4bn US Army contract

• US Navy grants General Dynamics Bath Iron Works US$3.9bn contract for four destroyers

• Elbit Systems awarded $22mn contract with US Air National Guard

• Click here to read the May issue of Business Chief US

Serco will use the acquisition to strengthen its present in the naval support, modernization and sustainment verticals, where the company has seen significant growth over the past few years. , Serco will become a stronger end-to-end, full lifecycle, integrated maritime solutions (Design – Integrate – Support) provider for the U.S. Navy and other customers. In addition, this acquisition substantially increases Serco's Canadian defense business and adds a new customer, Royal Canadian Navy, and a new location, Vancouver Shipyards.

"Combining our existing C5ISR capabilities in ship, shore, satellite and radar modernization with the naval design and engineering capabilities of NSBU will make Serco a top-tier Navy services provider with a full-spectrum, design-integrate-support life cycle maritime offering," said Dave Dacquino, Chairman and CEO of Serco Inc. "Like Serco, the NSBU team is distinguished by a hardware-agnostic, agile engineering approach that delivers strong value to customers and allows us to help our forces modernize and extend the service life of critical naval assets. NSBU has an excellent industry reputation and is known for innovative design approaches that address the real-world priorities of the 21stcentury fleet. This is a growth-oriented strategic acquisition that brings Serco highly valued technical talent and we look forward to the new opportunities this transaction will create across both organizations."