On Nov. 12, Serco agreed to acquire QinetiQ’s U.S. operations for $292 million, expanding its military space services business in the United States.

The transaction transfers QinetiQ US’s defense and space portfolio to Serco, including an active five-year technical services contract with the Space Development Agency (SDA) that runs through 2028.

Diverging U.S. Defense Expansion Strategies

The deal represents Serco’s second U.S. military space purchase in under two years. In May 2025, Serco acquired a Northrop Grumman unit responsible for mission training and satellite ground network software, establishing a specialized footprint in military orbital operations and ground segment support. Integrating QinetiQ’s U.S. operations expands that portfolio with direct engineering and technical services for the SDA’s space programs.

For QinetiQ, the $292 million sale marks a strategic retreat from its American expansion effort. The divestiture comes four years after QinetiQ paid $590 million to acquire Avantus Federal in 2022 in a bid to scale its U.S. defense and federal services presence, selling the U.S. business at roughly half of that earlier acquisition price.

SDA Contract Execution Through 2028

With the transaction agreed on Nov. 12, Serco prepares to absorb QinetiQ US’s ongoing technical services responsibilities for the SDA, ensuring continuity on the five-year contract through its scheduled conclusion in 2028.

Pairing QinetiQ US’s SDA program support with the mission training and satellite ground network software capabilities acquired from Northrop Grumman consolidates Serco’s position as a dedicated U.S. military space services provider over the coming years.