Business
Completion of NSBU acquisition
Completion of NSBU acquisition.
About this update from Serco Group Plc
[{"type":"text","content":"\n \nRNS Number : 6057H Serco Group PLC 01 August 2019 \n\nCompletion of NSBU acquisition\n \n1 August 2019\nSerco Group plc\nLEI: 549300PT2CIHYN5GWJ21\n\n \nSerco Group plc ('Serco' or 'the Group'), the international service company, confirms that, following receipt of all necessary regulatory approvals, it has today completed the acquisition of the Naval Systems Business Unit and a small number of related contracting entities (collectively, 'NSBU'), from Alion Science & Technology Corporation. As a result, five months of financial contribution of NSBU will be consolidated within Serco's financial year ending 31 December 2019.\n \nSummary of previously announced details regarding the acquisition\n \nOn 23 May 2019, Serco announced that it had entered into a definitive Asset Purchase Agreement to acquire NSBU for $225m on a cash-free, debt-free basis, and subject to customary working capital and other relevant adjustments that are now in the process of being finalised.\n \nNSBU is a leading provider of naval design, systems engineering, as well as production and lifecycle support services to the US Navy, US Army and Royal Canadian Navy. In the 12 months to September 2018 NSBU had revenues of $336m, which compares with Serco's North American Defence revenues in 2018 of $453m; NSBU has an order book of around $600m and a new business pipeline of over $2bn.\n \nThe acquisition is an important step for Serco, materially adding to the scale and capability of our US defence business, and in particular to the maritime support segment. Serco employs some 6,000 people in North America, of whom 2,300 work in defence, and has been providing services to the US Navy for nearly 30 years. NSBU, which employs around 1,000 people, brings world-class ship and submarine design, systems, and engineering services, production support and in-service sustainment capabilities, which are highly complementary to Serco's existing skills in ship modernisation, hardware integration and naval logistics.\n \nAs well as broadening capabilities, the acquisition increases significantly the scale of our international Defence businesses. Serco Group's revenue mix from Defence will increase from 30% to around 35%, which is equivalent to approximately $1.6bn (£1.2bn) on a pro forma basis ...