Kratos Defense & Security Solutions [KTOS] yesterday said it has acquired select assets of a critical infrastructure and public safety system integration business from an undisclosed large international public company.
Kratos, paid $20 million in cash for the business, said the acquired business is a primary competitor of its Public Safety & Security (PSS) business unit in the United States.
Kratos said that similar to PSS, the business it has acquired designs, engineers, deploys, manages and maintains specialty security systems at some of the most strategic asset and critical infrastructure locations in the United States. These security systems are typically integrated into command and control systems.
“With this acquisition, we have essentially acquired one of our business’ most formidable competitors and significantly expanded Kratos’ PSS business capabilities, qualifications, customer relationships, contract portfolio and geographic depth and breadth,” Ben Goodwin, president of Kratos’ PSS division, said in a statement. “Together, the combined business will be one of the largest and most capable critical infrastructure security system integrators in the industry, with the scale and wherewithal to bid on and pursue some of this country’s largest, most sophisticated and important security deployments.”
Goodwin also said that the acquired business has a multi-year security system contract at one of the nation’s highest profile locations potentially worth tens of millions of dollars.
The newly acquired business is expected to have between at least $35 million to $45 million in sales this year and at least between $4 million to $5 million in adjusted earnings before interest, taxes, depreciation and amortization.