Movers and SHAKERS
Wednesday, June 17, 2020
Kratos Defense & Security (KTOS)
Acquisition Expands Satellite Antenna Capability
Kratos Defense & Security Solutions is a National Security technology provider with proprietary expertise in the area of unmanned aerial vehicles, electronics for missile defense systems, electronic warfare systems, satellite control and management systems and support services for emerging naval weapon systems. Commercial and state and local government revenues are about 25% of the total and comprise primarily of critical infrastructure monitoring and protection systems.
Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
ASC Signal Acquisition. Yesterday, Kratos announced the acquisition of ASC Signal for $35 million. ASC is a manufacturer of high-performance, highly engineered antenna systems for satellite communications, radar, electronic warfare, and high-frequency applications. While details of the business size were not provided, we would note the business was running at a $50 million revenue rate back in 2016. Notably, the Department of Justice required the sale of ASC in order for Communications and Power Industries to proceed with its proposed acquisition of General Dynamics SATCOM Technologies, Inc.
Synergies and Expansion. The acquisition brings numerous synergies with Kratos' existing core space business and expands Kratos' industry-broadest offering of advanced products across the ground station segment. ASC antennas are used in a variety of mission-critical space applications, ranging from Telemetry, Tracking & Command to satellite communications and earth sensing and observation for military and...
This research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.