Britain-based conglomerate Ultra ElectronicsÂ hasÂ agreed to purchase Kratos Defense & Security Solutions‘ electronic products division for up to $265 million in cash in order to push further into the electronic warfare market.
Ultra said MondayÂ Kratos will receive $260 million upfront and up to $5 million in potential additional payments under the deal, which the companies expect to completeÂ in the third quarter of 2015.
Kratos President and CEO Eric DeMarco said the sale culminates a strategic business review conducted by the firm’s board of directors.
Ultra CEO Rakesh Sharma said he expects the transaction to add new technologies to the British company’s radio frequency and microwave technology portfolio as well as complement the firm’s sensor and communications business.
EPD, led by Richard Poirier, will operate as Ultra Electronics Herley Industries under Ultra’s tactical and sonar division upon the deal’s closure.
The business designs and manufactures RF and microwave components for integration into EW, radar, communication, missile, simulation and flight testing systems.