Serco Group PLC (LON:SRP) has made its first major acquisitions since the current management team took over in 2014.
The outsourcer has agreed to acquire the UK Health Facilities Management contracts of troubled contractor Carillion (LON:CLLN) for £50.1mln on a cash-free, debt-free basis.
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The contracts provide Facilities Management support services to over 50 NHS sites across the UK, including five acute hospital trusts.
Annual revenue is £90mln and the contracts, which run for 14 years on average, are profitable added Serco.
Separately, Serco is to buy BTP Systems, which supplies satellite communication and radar engineering technical services to the US defence industry for US$20mln.
BTP provides satellite and radar maintenance services, repair and overhaul and testing facilities and will fit with Serco's existing Ship & Shore modernisation work and existing capability in capability in 'C5ISR' (command, control, communications, computers, combat systems, intelligence, surveillance and reconnaissance).
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Revenue for 2017 is expected to be approaching US$20m and underlying profit [EBITDA] approximately US$3m.
Rupert Soames, Serco’s chief executive, said the BTP acquisition adds 'deep expertise' in satellite and radar engineering services, a growing segment of the market, and will help build its reputation in the US defence sector.