The Kratos Factor: What the Henry Brothers Purchase Tells Integrators
On Oct. 6, 2010, Kratos Defense and Security Solutions Inc., a national security solutions provider based in San Diego, Calif., announced its intention to acquire Henry Bros. Electronics Inc. for approximately $45 million in cash. This purchase will take Henry Brothers into a new phase of growth and I believe sends a clear message to the traditional physical security market about (a) how to build an attractive company (Henry Brothers), and (b) where the market is heading through security convergence.
Henry Brothers (HBE) has focused part of its business on the Homeland Security market (critical infrastructure) and designs and integrates a range of leading-edge surveillance and security products. HBE will be folded into the Kratos Public Safety & Security Division, believed to be the nation’s second largest independent systems integrator focusing on solutions ranging from access control and surveillance to fire safety and building automation.