17.02.2021, 07:46
Serco Acquires Whitney, Bradley & Brown
Serco has acquired U.S. defence contractor Whitney, Bradley & Brown Inc (WBB) from H.I.G. Capital in a deal worth $295 million.
WBB specializes in programme support, capabilities development and analysis, mission performance, machine learning, artificial intelligence and engineering, with the acquisition expected to add to the scale, breadth and capability of Serco’s North American defence business and provide a platform for entry into all major segments of the US defence services market.
Rupert Soames, Serco Group Chief Executive, comments: “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 per cent, WBB takes our North American defence revenues to around $1.1 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.
“It creates a powerful platform for future growth and brings us impressive new capabilities in areas such as Advanced Data Analytics, AI & 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. I greatly look forward to welcoming the WBB management team led by their CEO Robert Olsen along with 1,000 skilled WBB people to Serco and working with them and other colleagues as we build a strong global defence business.
“The acquisition will be immediately accretive to our margins and to our earnings per share, and the recent strong cash performance allows us to execute this acquisition within our existing debt facilities whilst staying well within our target leverage ratio.”
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