Serco to buy Alion's naval systems business unit

By Marjorie Censer  / May 23, 2019

Serco said today it has agreed to acquire Alion Science & Technology's naval systems business unit, including its Canadian business, for $225 million.

The deal, slated to close in the second half of this year, would add a business with annual sales of $336 million and about 1,000 employees. Serco will retain the organization's management team and operate it as a new business unit.

Dave Dacquino, Serco's chief executive, said in an interview this morning that the acquisition was targeted and not part of a competitive bidding process.

The unit was "unique. It was different," he said, noting it had the size and reputation Serco was seeking.

He told Inside Defense the addition of the business will fill out the company's "full life-cycle service capability."

"People think of us as modification and maintenance," he said. "But now we're fully into sustainment as well."

Additionally, Dacquino said the unit significantly enlarges the company's Canadian presence.

The Alion unit "focuses on integrated ship and systems design, including naval architecture, and marine, structural and systems engineering, and provides life-cycle naval fleet support and weapon platform services including program management, production support, fleet readiness and operational sustainment," Serco said, noting the business' customers include Naval Sea Systems Command, the Office of Naval Research, the Coast Guard, the Royal Canadian Navy and some international navies.

Vince Stammetti, senior vice president of the business, is expected to serve as senior vice president of the new Serco business unit, according to the company.