Home / M&A Activity / Eric DeMarco: Kratos Eyes Defense Business Focus With Public Safety & Security Divestiture

Eric DeMarco: Kratos Eyes Defense Business Focus With Public Safety & Security Divestiture

Kratos Defense and Security Solutions (Nasdaq: KTOS) has agreed to sell its public safety and security system integration business to Securitas Electronic Security for approximately $69 million in cash.

Eric DeMarco, Kratos president and CEO, said in a statement published Wednesday the divestiture concludes the execution of the company’s strategy to transition into a pure play defense technology and systems provider.

DeMarco added the transaction will allow Kratos to focus its efforts on its core businesses that include missile defense, satellite communications, aerial drones, microwave electronics and training systems.

Kratos said it expects to get approximately $70 million in net cash proceeds from the deal and anticipates the transaction to close over the next three months, subject to regulatory approvals and other customary closing conditions.

Canaccord Genuity and Paul Hastings LLP respectively serve as Kratos’ financial adviser and legal counsel in the transaction.

Check Also

BAE Selected to Develop Cybersecurity Tools for DARPA’s SafeDocs Initiative

The Defense Advanced Research Projects Agency has awarded BAE Systems a contract to develop two cybersecurity tools designed to protect electronic files as part of DARPA's Safe Documents program.

Accenture’s Federal Unit to Support Army ERP System Under Potential $76M Contract

Accenture's (NYSE: ACN) federal services business has won a potential six-year, $75.8M hybrid contract to provide support services for the U.S. Army's unified enterprise resource planning system.