American Industrial Partners approached the FTSE-250 company, which manages UK government immigration centres, about a potential bid late last year, Sky News learns. Sky News has learnt that American Industrial Partners (AIP) contacted Serco late last year about a potential bid for the company. The two sides are said to have engaged with one another, although it was unclear whether AIP had lodged a firm takeover proposal during their discussions.

A person close to Serco insisted on January 26, 2024 that there were no longer any active talks between them. Serco, which has a market capitalisation of about £1.9 billion, manages a string of critical government contracts in the UK, including processing asylum-seekers at two immigration centres in West Sussex and Bedfordshire. Last year, it was awarded a contract to maintain and operate the UK's air defence radars for the next five years.

That deal is worth an estimated £32 million, and includes sites at Brizlee Wood in Northumberland and Saxa Vord in the Shetland Isles. While there may not be any live discussions between Serco and AIP, the news of an approach from a serious private equity bidder will effectively put the London-listed company in play. A conventional 30% premium to the current Serco share price would value it at about £2.5 billion.