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Serco Acquires Alion’s Naval Systems Business Unit

Serco Group has completed the acquisition of Alion Science & Technology Corporation’s Naval Systems Business Unit, including its Canadian business and a small number of related contract operations (collectively ‘NSBU’), following the receipt of all regulatory approvals and customary closing conditions. The purchase price was $225 million.

This acquisition significantly expands Serco’s work for the Canadian Government for multiple maritime programs. Key to the business are contracts with SeaSpan’s Vancouver Shipyards for design agent services on the Joint Support Ship. The acquisition brings significant ferry design and construction oversight experience gain on programs including the Pelee Island, Wolfe Island, and Amherst Island ferries. The team also provided design agent services on multiple international projects such as the Australian M/V Investigator.  

Serco’s existing business in Canada includes supporting clients in the defence, aviation, and transportation sectors. Since 1998, Serco has also supported the Department of National Defence at 15 Wing Moose Jaw and 5 Wing Goose Bay with aviation services, logistics, and facilities management.

The acquisition of the NSBU brings new capabilities to Serco in areas including:

• Naval architecture as a leader in Canada for engineering for design, shipbuilding, and maintenance of a range of marine vessels and structures.

• Marine engineering services including design of power distribution and propulsion, displacement, stability and hydrodynamic performance of a wide range of surface ships and submarines.

• Program management with decades of experience in managing large-scale procurement and production programs for military and civilian vessels, advanced logistics, and sustainment support to optimize in-service time and cost parameters.

The acquisition increases the size of Serco’s Canadian business to approximately CND$150 million and 1,245 employees. Serco Group has 8,000 employees in North America and over 50,000 employees worldwide, operating internationally across four geographies: UK & Europe, North America, Asia Pacific and the Middle East.

Bruce Samuelsen, Alion’s President of Naval Systems, has been named as Senior Vice President of Serco’s International Maritime Programs and will oversee the new Serco Canada Marine business unit as well as international maritime programs. Natasha McLean will continue leading the Serco Canada Services business unit.

Dave Dacquino, Chairman and CEO of Serco Inc., commented: “We are delighted with this major expansion of the scope of services we provide in Canada and the growth of our team dedicated to improving the effectiveness of government services. Globally, Serco provides ship modernization, hardware integration, and naval logistics to government customers in the UK, United States and Australia. We now can offer world-class expertise in new construction, modernization and life extension of a wide range of military and civilian vessels, including next-generation unmanned ships and submersibles, to customers in Canada.”

Natasha McLean, Managing Director of Serco Canada Services, said: “Serco’s new capabilities align closely with Canada’s National Shipbuilding Strategy to renew the fleet of both combat and non-combat vessels. We are proud be able to support the modernization of Canada’s naval assets in areas including naval architecture, marine engineering, C5I, logistics and fleet sustainment. The growth of our team on the ground demonstrates Serco’s commitment to the Canadian market.”

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