Serco to acquire Whitney, Bradley & Brown

Serco said today it has agreed to acquire Whitney, Bradley & Brown, known as WBB, from an affiliate of private-equity firm H.I.G. Capital for $295 million.

In an interview with Inside Defense this morning, Dave Dacquino, Serco's chief executive, said WBB specializes in acquisition and program management services, which is Serco's fastest-growing area. He noted the deal "adds 20% to our defense business."

Tom Watson, Serco's senior vice president for the defense services business group, said during the same interview the acquisition doubles the company's Air Force and Army businesses. It also, he said, provides the contractor work with new customers, including the Missile Defense Agency and the Office of the Secretary of Defense.

"They bring some really, really interesting and exciting technology to Serco in areas that we're not really involved in today," Watson added.

In particular, Serco said it will bolster its capabilities in artificial intelligence, machine learning, data analytics and cyber consulting and be able to offer new expertise in areas including wargaming and simulation.

WBB has about 1,000 employees and had sales of about $212 million in 2020. Robert Olsen, WBB's chief executive, will become senior vice president of the new Serco business unit.

Dacquino said Serco doesn't anticipate any major layoffs. The unit, he added, will be standalone at least through the end of the year.

The deal is expected to close in the spring.