Kratos Defense & Security Solutions [KTOS] yesterday said it has agreed to acquire Herley Industries [HRLY] for $19 per share, or about $270 million in cash, giving it design and production capabilities in microwave-based components and technologies used in various military systems.

The deal is expected to close in the first quarter of 2011 pending regulatory approval and the tendering of a majority of Herley’s common stock. Kratos expects the deal to be accretive to its earnings, excluding transaction and finance related costs.

Kratos’ core expertise is in systems engineering and systems support, program management and other professional services, as well as systems integration for commercial security systems.

Herley’s components and subsystems are used in manned and unmanned aircraft, tactical and ballistic missiles, sensor-based platforms, electronic warfare systems, electronic attack systems and command and control.

Herley had $7 million in net income on $188.1 million in sales last year. The company began reviewing its strategic alternatives in the fall of 2009.

Herley’s financial advisers on the deal were Credit Suisse Securities and Jefferies & Co. Kratos was advised by Oppenheimer & Co.