Global satellite services provider Integral Systems, Inc. (NASDAQ-ISYS), announced it will merge with a subsidiary of Kratos Defense & Security Solutions, Inc (NASDAQ: KTOS) for cash and stock at an enterprise value of approximately $266 million. Kratos provides engineering and information technology services and solutions for U.S. national security priorities.
In the deal, each Integral Systems share will be converted into $5.00 in cash and 0.588 of a share of Kratos common stock. Combined, these holdings are worth approximately $13.00 per share.
For the deal to be finalized, the applicable waiting period of the Hart-Scott-Rodino Antitrust Improvements Act must be terminated or expire, along with other closing conditions. Each company’s stock holders still need to sign off on the deal.
Commenting on the transaction, Integral Systems’ Chief Executive Officer Paul Casner said the two technology businesses complemented each other’s operations.
“Integral Systems’ commercial-based products, solutions and services are immediately synergistic with the Kratos business strategy, ” he said. “As a result of this merger, we will be able to bring an augmented set of offerings to a significantly larger and more diverse customer portfolio.”