Ultra Electronics to acquire Kratos Defense for $265m
Defence and aerospace group Ultra Electronics Holdings has reached a deal to acquire the electronics products division of Kratos Defense and Security Solutions for $265m (£173.5m).
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The deal with the US-based radio frequency and microwave systems supplier will increase Ultra Electronics’ presence in the US electronic warfare market, the FTSE 250 group said in a statement on Monday.
Ultra Electronics said the deal will be funded using existing resources and by a new four-year debt facility provided by four banks, adding it will pay $260m in cash upon completion of the deal with an additional $5m due next year.
The London listed company said Kratos’ electronics products division provides technology on a number of established strategic defence including the Trident II D5 missile, F-16 Fighting Falcon and Eurofighter, AMRAAM missile.
“EPD has a strong position on supported legacy programmes as well as future strategic ones,” said group chief executive Rakesh Sharma.
“Together, we have the technology, innovation and market reach which will enable us to enhance our market position in the attractive electronic warfare market, both within the US and internationally.”
Ultra Electronics shares were up 1.53% to 1,859.00p at 08:17 on Monday.