Kratos Buys UAS Software Engineering Firm 5-D Systems; Eric DeMarco Quoted

Kratos Defense & Security Solutions (Nasdaq: KTOS) has acquired software engineering company 5-D Systems for an undisclosed sum as part of efforts to expand capabilities in unmanned aerial systems and establish a technology center in the Austin area.

Kratos said Friday 5-D will operate as a systems engineering hub within its unmanned systems division.

5-D Systems is a small business with over two decades of experience in designing, developing, supporting and testing manned, unmanned and optionally piloted aviation systems and delivering logistics, technical and program systems engineering and technical assistance and advisory and assistance services on government sites.

5-D has Level 3 designation under the Capability Maturity Model Integration framework and has worked with Kratos as a subcontractor on various programs, including the XQ-58A drone and aerial target systems. The company has facilities in Huntsville, Alabama, and Austin, Texas, which is home to Defense Innovation Unit, Army Futures Command and other Department of Defense components.

“The acquisition of this long-term teammate enables us to immediately achieve our goal, while seamlessly complementing and expanding our engineering team with capability and credentials to help with our continually growing unmanned tactical and target system development efforts,” said Eric DeMarco, president and CEO of Kratos.

“5-D brings specific new capabilities to Kratos with their legacy manned conversion (Optionally Piloted Vehicle) and larger aircraft experience including the QF-4, with the associated runway takeoff and landing modes that have direct application on several Kratos pursuits,” DeMarco added.

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