Serco Completes SI International Deal
British conglomerate Serco Group, which operates everything from British prisons to schools, expands its moves into American government markets with a $524 million buy of SI International.Serco Group, a British-based international service firm, has completed its $524 million purchase of SI International, a provider of information services, technology and network solutions to the U.S. government. Serco plans to combine SI International's operations with Serco's existing North American business. SI International, based in Reston, Va., ranked 44th in a 2008 ranking of top federal prime contractors, with more than $414 million in contracts. Serco ranked 56th, with contracts worth $293 million. Combined, the two companies' contracts would rank in the top 30 of the $290 billion U.S. federal government services market.
Under the terms of the agreement, Serco paid $32 a share, valuing its fully diluted share capital at approximately $422 million. Including the assumption of SI International's net debt, the deal comes to $524 million.