1st Jun 2015 06:34
LONDON (Alliance News) - Ultra Electronics Holdings PLC on Monday said it has struck a deal to acquire the electronics products division of US-based radio frequency and microwave systems supplier Kratos Defense & Security Solutions for USD265 million.
FTSE 250-listed Ultra Electronics said the deal would give it a major presence in the electronic warfare market, in particular in the US, and said the long-term contracts it will take on as part of the deal will boosted its order book visibility.
Kratos' EPD division is a sole-source provider of technology on a number of established strategic defence platforms, Ultra said, including the Trident II D5 missile, F-16 Fighting Falcon and Eurofighter, AMRAAM missile.
The deal will be funded using existing resources and by a new four-year term loan provided to Ultra by four banks. It will pay USD260 million in cash at closing of the deal, with a further USD5 million due over the next 12 months.
"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 RF and microwave sectors and complements the group's communications and sensor portfolio," said Rakesh Sharma, Ultra's chief executive.
"EPD has a strong position on supported legacy programmes as well as future strategic ones. Together, we have the technology, innovation and market reach which will enable us to enhance our market position in the attractive electronic warfare market, both within the US and internationally," Sharma added.
By Sam Unsted; [email protected]; @SamUAtAlliance
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