LONDON (ShareCast) - (Sharecast News) - FTSE 250 outsourcer Serco has agreed to buy Whitney, Bradley & Brown (WBB), a provider of advisory, engineering and technical services to the US military, for $295m from an affiliate of private equity firm H.I.G. Capital.
Serco said the deal will increase the scale, breadth and capability of its North American defence business and will give the company a strong platform from which to address all major segments of the US defence services market.

The acquisition, which is due to complete in the second quarter, is expected to be immediately accretive to earnings and to enhance underlying earnings per share by around 10% in 2022.

Chief executive officer Rupert Soames said: "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 $1.1bn 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."

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