Kratos Headquarters in San Diego. Photo: Kratos

Kratos Defense & Security Solutions will acquire Israeli satellite mobile systems company Orbit Technologies for $356.3 million in cash, the companies announced Wednesday. Orbit will be integrated with Kratos’ Microwave Electronics Division (KMED), headquartered in Jerusalem.

Orbit’s core business, which encompasses hardware, products and systems for military unmanned aerial, seaborne, undersea and land vehicles, as well as systems for traditional prime contractors, fits with Kratos’ push to scale up its global business. Once the acquisition is completed, Kratos will gain access to Orbit’s customer portfolio in Israel, the United States, Europe, and the Pacific region.

Kratos expects the acquisition to close by the end of March 2026, assuming completion of regulatory matters related to an acquisition of an Israel-based national security company by a non-Israel based company.

Kratos President and CEO Eric DeMarco mentioned how well the two companies business and culture profiles fit in comments about the acquisition.

“Customers of Orbit are also existing customers of Kratos, including in Israel, the United States, Europe, India and elsewhere, adding to our conviction in this transaction’s projected success for all parties involved, including Kratos shareholders,” DeMarco said. “The combination of Kratos’ microwave technology and Orbit’s communications technology is expected to provide new growth opportunities that are not currently available to either company on a stand-alone basis. There is a global recapitalization of weapon systems underway, and Orbit significantly advances Kratos’ position to take advantage of this.”