Kratos Divest Public Safety, Security Division for $70.7M
Kratos Defense and Security Solutions has completed the sale of its Public Safety and Security division (PSS) to Securitas Electronic Security. At the transaction close, Kratos received $70.7 million in cash, subject to a working cash adjustment, and Kratos expects to ultimately receive approximately $70 million of net cash proceeds from the transaction, net of related transaction expenses.
With the closing of this transaction, Kratos’ pro forma cash balance at April 1 would have been $198.5 million, with pro forma net leverage of approximately 2.0X.
“This divestiture will allow us greater focus and financial flexibility for our high growth core businesses, including unmanned aerial drones, satellite communications, missile defense, training systems and microwave electronics,” said Eric DeMarco, Kratos’ president and CEO.
Canaccord Genuity served as exclusive financial advisor to Kratos in connection with the transaction and Paul Hastings served as legal counsel.