Kratos to acquire satellite antenna biz
By
Ross Wilkers
Kratos Defense & Security Solutions is acquiring a satellite antenna maker that was made available to the market by the antitrust regulatory process.
Kratos Defense & Security Solutions has agreed to acquire the ASC Signal Division business of Communications & Power Industries for $35 million in cash to broaden antennas and other offerings in the space ground market.
The transaction is slated to close within the next two months pending regulatory approvals and other closing conditions, Kratos said Tuesday.
Regulators’ opinion helped spur this transaction. Late last month, CPI completed its acquisition of the now-former General Dynamics SATCOM Technologies business that builds communications antenna systems and related radio frequency products.
But in order to do that, the Justice Department’s antitrust division told CPI to find a buyer for ASC Signal Division to prevent overlap in large satellite ground station antennas for geostationary satellites. DOJ would otherwise go forward with a civil antitrust lawsuit if CPI did not make that divestiture.
In ASC, Kratos sees an opportunity to position for growing demand for Earth station antennas amid increasing numbers of satellites being launched into orbit and constellations that all require ground infrastructures.
Tony Russell, who led ASC at CPI, will join Kratos to lead the antenna/RF operating unit.
The deal for ASC represents the second acquisition in two years for Kratos, which in 2018 divested its then-public safety business to gain more focus on the defense core. Kratos’ most recent acquisition was last year of a majority stake in unmanned engine maker Florida Turbine Technologies.