Kratos to Acquire Israel-Based Orbit Technologies Ltd for $356.3 Million

Core Viewpoint - Kratos Defense & Security Solutions, Inc. has signed a definitive agreement to acquire 100% of Orbit Technologies Ltd for $356.3 million, expected to be funded via cash on Kratos' balance sheet [1][2]. Company Overview - Kratos is a technology company focused on defense, national security, and commercial markets, known for its innovative and cost-effective solutions [5][6]. - Orbit Technologies is a leading provider of satellite-based communication systems for various military and commercial applications, serving customers globally, including in Israel, the U.S., Europe, and the Pacific region [2][3]. Acquisition Details - The acquisition is anticipated to be immediately accretive across virtually every financial metric for Kratos [2][3]. - Orbit will operate under Kratos' Microwave Electronics Division (KMED) after the acquisition, which is headquartered in Jerusalem, Israel [2]. - The acquisition is expected to close by the end of March 2026, pending customary closing conditions [3]. Strategic Rationale - The combination of Kratos' microwave technology and Orbit's communication technology is expected to create new growth opportunities that neither company could achieve independently [3]. - Major customers of Orbit are also existing customers of Kratos, enhancing the strategic fit and potential for success in the transaction [3]. Leadership Statements - Kratos executives expressed excitement about the acquisition, highlighting the complementary strengths of both companies and the potential for enhanced capabilities in the defense sector [3]. - Orbit's CEO noted that joining Kratos represents a significant step for Orbit, allowing for expansion in the U.S. defense market [3].