Ultra Agrees to Business Acquisition of a Division of San Diego Defense and Security Company Kratos

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San Diego defense and security company Kratos has decided to sell its Electronic Products Division to Ultra Electronics Holdings, PLC in a cash transaction valued at $265 Million.  Kratos’ board of directors views the transaction as the culmination and conclusion of “a detailed and thorough strategic alternatives review” completed late last year.

The transaction allows Kratos to apply nearly $400 million in net operating loss (NOL) carryforwards reducing the tax implications of the sale, and deleveraging the company to increase it’s financial strength moving forward.  In a press release, Kratos announced its expectation to remain a “leader in unmanned systems, satellite communications, signal monitoring, cyber security, microwave technology, and certain disruptive technology areas, including hypersonics, directed energy and railgun.”

Mergers and acquisitions through stock purchase or asset purchase strategies allow San Diego businesses to divest themselves of subdivisions or portions of their companies that may not align with core corporate strategy.  They are an excellent tool for business acquisition, positioning your business to grow through the purchase of a competitor or the assets of a company in your industry.  The experienced business attorneys at the Watkins Firm bring decades of business transaction experience and expertise to these transactions for our clients.  If you are interested in expanding your business, or divesting a portion of your company we invite you to contact us at 858-535-1511 for a complimentary and substantive consultation.