Serco wraps up SI International buy

Serco Group plc has completed its acquisition of SI International Inc., a provider of information services, technology and network solutions to the federal government.

Under the terms of the merger agreement, Serco paid $32 per share in cash, or approximately $422 million. Including the assumption of SI International’s net debt, the deal totals $524 million.

SI International will be combined with Serco North America, of Reston, Va., increasing Serco’s ability to deliver integrated solutions to the $290 billion federal government services market, Serco officials said today.

Serco North America and SI International will have combined annual revenue of $1.3 billion and approximately 11,500 employees, the officials added.

Major customers include the intelligence community, Army, Air Force, Navy, State and Homeland Security departments, Federal Aviation Administration, Federal Retirement Thrift Investment Board, and U.S. Postal Service.

Serco Group, a $5 billion international business, is based in Hampshire, England.

SI International ranks No. 44 on Washington Technology’s 2008 Top 100 list of the largest federal government prime contractors. Serco Services, a division of Serco North America, ranks No. 56 on the list.