Kratos Defense & Security Solutions Inc (KTOS.O) is to purchase rival Integral Systems Inc (ISYS.O) for $225 million in cash and stock to expand in the surveillance and intelligence business where defense spending is expected to remain strong. The deal is the second major acquisition for Kratos this year. It struck a deal to buy microwave technology company Herley Industries for $270 million in February. Kratos, which provides security and surveillance services to U.S. government agencies, said it would acquire each Integral Systems stock for $5 a share in cash and 0.588 shares of common stock. Based on Kratos' Friday closing, the offer price values Integral Systems at $12.65 a share, a discount of about 3 percent to the stock's close on Friday.
Kratos Defense & Security Solutions, Inc. (Kratos) is engaged in providing mission critical engineering, information technology (IT) services and war fighter solutions. Shares of KTOS fell by 4.0% or $-0.52/share to $12.49. In the past year, the shares have traded as low as $9.36 and as high as $14.77. On average, 155349 shares of KTOS exchange hands on a given day and today's volume is recorded at 309745.
Integral Systems, Inc. is engaged in providing integrated technology solutions for the aerospace and communications markets. Shares of ISYS fell by 6.53% or $-0.85/share to $12.16. In the past year, the shares have traded as low as $5.93 and as high as $13.67. On average, 82970 shares of ISYS exchange hands on a given day and today's volume is recorded at 727526.
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