Kratos Defense & Security Solutions to acquire Orbit Communication Systems for $356.3m.

Kratos Defense & Security Solutions, a company specializes in directed-energy weapons, unmanned systems, satellite communications, cyber security/warfare, microwave electronics, missile defense, training and combat systems, agreed to acquire Orbit Communication Systems, a global provider of airborne communications, satellite-tracking, maritime, ground-station and new space solutions for commercial and government establishments, for $356.3m. “Orbit checks every box in a Kratos acquisition, including outstanding leadership and culture, mission-committed employees and leading technology, with real, battle-proven hardware, products and systems that are in Kratos’ sweet spot. Additionally, major customers of Orbit are also existing customers of Kratos, including in Israel, the United States, Europe, India and elsewhere, adding to our conviction in this transaction’s projected success for all parties involved, including Kratos shareholders. The combination of Kratos’ microwave technology and Orbit’s communications technology is expected to provide new growth opportunities that are not currently available to either company on a stand-alone basis. There is a global recapitalization of weapon systems underway, and Orbit significantly advances Kratos’ position to take advantage of this. Importantly, this was a negotiated transaction between Kratos and Orbit, which significantly reduced disruption to both companies’ operations and the commitment to our National Security focused mission.” Eric DeMarco, Kratos President and CEO.