Kratos Defense & Security Solutions Inc., a national security solutions provider, announced the completion of its acquisition of Integral Systems Inc. Kratos completed the acquisition through a reverse merger of a wholly owned subsidiary with and into Integral Systems.
“Together, Kratos and Integral Systems represent a force multiplier in our ability to bring mission critical communications and C5ISR solutions to our customers,” said Phil Carrai, president of Kratos Technology & Training Solutions. “With its products used in approximately 80 percent of satellite operations, Integral is well known as the leader in ground systems, signal processing and other areas of satellite command and control, but it is also at the cutting edge of advanced technologies for Unmanned Aerial Vehicles (UAVs), situational awareness, remote management and electronic warfare that fit naturally into the Kratos portfolio of solutions for assuring the availability, reliability and security of mission critical systems for defense, intelligence and commercial operations.”
As a result of the merger, each outstanding share of Integral Systems common stock was cancelled and converted into the right to receive $5, in cash, without interest, and the issuance of 0.588 shares of Kratos common stock. As a result of the merger, shares of Integral Systems common stock ceased trading on the NASDAQ Global Select Market.
“For almost three decades, Integral Systems has led the way in providing commercial-based products, solutions and services to the satellite and aerospace communities,” said Paul Casner, president and chief executive officer of Integral Systems. “This transaction brings together two of the leading high technology companies. Together we will be able to bring our customers a broader array of advanced technologies to meet their most critical needs while creating rich opportunities for our employees. The combination of Integral Systems and Kratos is a win-win.”
Eric DeMarco, president and CEO of Kratos, said, “I want to personally welcome the Integral Systems employees to Kratos. Integral Systems and importantly its most valuable asset, its people, are extremely similar to Kratos, our culture and our personnel including being entrepreneurial, extremely dedicated and technical in nature, and we are very excited about the merger of these two outstanding organizations. As Paul mentioned, in addition to the combined company bringing additional and more robust capabilities and product offerings to our customers, where the combined business will have the opportunity for enhanced organic growth, there will also be additional personal and professional opportunities for our combined company’s workforce as we move forward.”