British manufacturing conglomerate Ultra Electronics Holdings has completed its purchase of Kratos Defense & Security Solutions‘ (Nasdaq: KTOS) U.S. and U.K. electronic products business for $260 million in cash and $5 million in taxes incurred.
Kratos said Monday its net cash proceeds from the transaction are $232.4 million after a $2 million escrow for purchase price adjustments, a $7.6 million working capital adjustment, $13 million in deal-related costs and $10 million in income taxes.
San Diego-based Kratos plans to use the proceeds to repurchase as much as $175 million of its seven-percent senior secured notes at par.
Ultra said in a separate release Monday that the electronic products business will operate within its communications and security division under the name of Ultra Electronics Herley.
CEO Rakesh Sharma said Ultra seeks to grow its electronic warfare product portfolio through the deal, which Kratos and Ultra announced the details of in June.
