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[Satellite TODAY Insider 05-19-11] Kratos Defense and Security Solutions (Kratos) has sealed a deal worth $266 million to acquire Integral Systems in a cash and stock transaction. Integral will be merged with a subsidiary of Kratos. The deal is expected to close in the third quarter of this year.
The combination of the two companies could bring a number of benefits as the new merged operation aim to bring advanced Command, Control, Communications, Computing, Combat Systems, Intelligence, Surveillance and Reconnaissance (C5ISR) platforms to market.
Katy Herr, Vice President of Marketing for Integral Systems told Satellite Today Insider that the combination of the two companies makes strategic sense. “Our technologically advanced, commercial-based products, solutions and services are highly synergistic with Kratos’ business strategy. As we investigated this business opportunity, we were encouraged by the potential synergies we identified. We have very few overlapping customers, yet our customer portfolios are highly complementary. As space-based assets become even more critical to support our nation’s airborne, naval and ground electronic warfare systems, the combined company will be able to better meet the needs of current and future customers.
She continues, “Long-term, this combination enhances the value proposition for our employees who are the heart and soul of the Integral Systems family. This combination will create additional opportunities for a rewarding work experience for our employees. It offers broader career development opportunities, more challenging technology development opportunities and increased opportunities to diversify their career paths.”
The lack of overlap in the two companies’ product portfolios seems to have been a key behind this deal. “Integral Systems’ EPOCH IPS command and control software is in use by a large part of the Department of Defense, its signal processing systems are used by approximately 80 percent of United States’ space missions. Integral Systems is also is the leading provider of satellite Radio Frequency monitoring, interference detection and geolocation. Kratos’ technology and cyber organization has a deep expertise in leading edge network infrastructure architecture, intrusion detection, information assurance, situational awareness and command and control products and solutions, including Kratos’ proprietary NeuralStar and dopplerVUE situational awareness and cyber protection products,” Herr says. “The two companies have incredible synergy within product lines and customers, no overlap of programs or contracts. Combined, the new company will have one of the most technologically oriented businesses in the growing and mission critical national security priority area.”
Serving the U.S. military with integrated solutions could be a key to this deal. “Integral Systems has deep relationships with the United States Air Force, while Kratos works closely with the United States Army and United States Navy. The products, solutions and services Integral Systems and Kratos offer can be easily integrated into most of the satellite-based programs both companies currently support,” Herr says.
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