Serco Group agreed on 12 November 2026 to buy QinetiQ's US business, QinetiQ Inc., for US$292m (£218m) in cash, adding space, surveillance and naval systems capabilities to its American defence arm.
Why Serco Group plc (via Serco Inc.) is buying QinetiQ Inc. (QinetiQ's US business)
Serco said the deal broadens its position with the US Space Force, Army and Navy and will lift its North American revenue to about US$2.5bn. QinetiQ said the sale creates a more focused group and strengthens its balance sheet.
Deal terms and financing
Consideration comprises about US$237m for the operating business and a US$55m acquired tax asset, expected to deliver more than US$100m of cash tax savings over 12 years. Serco expects run-rate cost synergies of at least US$3m by 2028 and says the deal adds about 0.6x to leverage.
Regulatory approvals and timing
Completion is expected in the first quarter of 2027, subject to customary conditions including US regulatory and security approvals.
Market context
QinetiQ launched a review of its US business in May 2026; it intends to return £200m of the proceeds to shareholders through additional buybacks after completion.
