UK defence firm Ultra Electronics Holdings announced it had agreed to acquire the electronic products division (EPD) of Kratos Defence and Security Solutions yesterday for up to $265m (£174m).
Ultra Electronics said the acquisition will strengthen its position in the growing market of electronic warfare and provide long-term contracts to boost its order book visibility.
Rakesh Sharma, chief executive of Ultra Electronics, commented: “I am pleased to announce the acquisition of EPD, and to welcome the business and its people into the Ultra Group. EPD adds significant core technologies in the radio frequency and microwave sectors and complements the group’s communications and sensor portfolio.”
He added: “Together, we have the technology, innovation and market reach which will enable us to enhance our market position, both within the US and internationally.”
In the year ended 31 December 2014, EPD generated a pre-tax profit of $11m and reported gross assets of $217m. Under the terms of the acquisition, Ultra Electronics will pay $260m in cash at closing, and up to another $5m in cash, expected to be paid over the coming 12 months.