KTOS - Kratos acquires engineering division of Southern Research for ~$80M

Kratos Defense & Security Solutions (NASDAQ:KTOS) has acquired the engineering division of Southern Research in Birmingham, Alabama for $75M in cash and $5M in common shares. The acquisition strengthens Kratos' capabilities in hypersonic, ballistic missile, space and intelligence surveillance and reconnaissance (ISR) areas. It establishes a new business unit, Kratos SRE, within the firm's defense and rocket support services division. The Southern Research Engineering (SRE) division helps customers in the development, modeling and deployment of advanced materials for extreme environments, including hypersonic, space, missile, missile defense, strategic deterrence, propulsion systems, and energy applications. SRE also specializes in ISR sensor development, electromechanical systems design and integration, aerospace engineering, materials engineering, artificial intelligence and machine learning. A quarter of the acquisition price has gone towards SRE's 54-acre campus with 102,000 sq ft of laboratory, material assessment, technology, prototype development, secure, and other facilities. The remainder of the purchase price represents ~1.6 times

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Kratos acquires engineering division of Southern Research for ~$80M