Blue Chip Bulletin: Serco quiet on US company bid talks
Rob Langston, 24 January 2011
Outsourcing specialist Serco Group has denied weekend reports of a near $2 billion for US defence company SRA International.
The group was linked over the weekend with a bid for the US defence and health services company.
However, in a statement to the markets the firm said it was not in 'any discussions regarding any major transaction at this time'.
In its interim statement last year, Serco chief executive Christopher Hyman said the US was a region offering 'significant potential for sustained growth in the medium and long term'.
The Virginia-based company SRA has more than 7,000 employees at 50 global sites and provides a number of services for the US government.
SRA International reported net revenues of $1.67 billion in 2010, however, net income as a percentage of revenue shrank to 1.1 per cent at $18.5 million. In 2009, net income was $58 million or 3.8 per cent of its $1.54 billion.
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