Kratos Defense and Security SolutionsÂ (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,Â said in a statement published Wednesday the divestiture concludes the execution of the companyâs 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 Kratosâ financial adviser and legal counsel in the transaction.