Kratos Completes Sale of Public Safety & Security Division to Securitas Electronic Security, Inc.
June 11 2018 - 2:00PM
Kratos Defense & Security Solutions, Inc. (Nasdaq:KTOS), a
leading National Security Solutions provider, announced today that
it has completed the previously announced sale of its Public Safety
& Security Division (PSS) to Securitas Electronic Security,
Inc. 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,
as previously described. With the closing of this
transaction, Kratos’ pro forma cash balance at April 1, 2018 would
have been $198.5 million, with pro forma net leverage of
approximately 2.0X.
Eric DeMarco, Kratos’ President and CEO, said,
"This divestiture continues the successful execution of Kratos'
strategy of being a high technology, product and systems aerospace
and defense company. Kratos is the recognized industry leader
in the development, demonstration and fielding of affordable
systems and 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."
Canaccord Genuity served as exclusive financial
advisor to Kratos in connection with the transaction and Paul
Hastings LLP served as legal counsel.
About Kratos Defense & Security
SolutionsKratos Defense & Security Solutions, Inc.
(NASDAQ:KTOS) develops transformative, affordable technology for
the Department of Defense and commercial customers. Kratos is
changing the way breakthrough technology for these industries are
brought to market through proactive research and a streamlined
development process. Kratos specializes in unmanned systems,
satellite communications, cyber security/warfare, microwave
electronics, missile defense, training and combat systems. For more
information go to www.kratosdefense.com.
Notice Regarding Forward-Looking
StatementsCertain statements in this press release may
constitute "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995. These
forward-looking statements are made on the basis of the current
beliefs, expectations and assumptions of the management of Kratos
and are subject to significant risks and uncertainty. Investors are
cautioned not to place undue reliance on any such forward-looking
statements. All such forward-looking statements speak only as of
the date they are made, and Kratos undertakes no obligation to
update or revise these statements, whether as a result of new
information, future events or otherwise. Although Kratos believes
that the expectations reflected in these forward-looking statements
are reasonable, these statements involve many risks and
uncertainties that may cause actual results to differ materially
from what may be expressed or implied in these forward-looking
statements. For a further discussion of risks and uncertainties
that could cause actual results to differ from those expressed in
these forward-looking statements, as well as risks relating to the
business of Kratos in general, see the risk disclosures in the
Annual Report on Form 10-K of Kratos for the year ended December
31, 2017, and in subsequent reports on Forms 10-Q and 8-K and other
filings made with the SEC by Kratos.
Press Contact:Yolanda
White858-812-7302 Direct Investor
Information:877-934-4687investor@kratosdefense.com
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