Kratos Defense & Security Completes Henry Bros. Electronics Buy
SAN DIEGO — Kratos Defense & Security Solutions Inc. announced today it has completed its acquisition of Henry Bros. Electronics Inc. (HBE). Under the terms of the deal, HBE stockholders will receive $8.20 in cash for each share of HBE common stock they own.
HBE announced Oct. 6 it had agreed to be acquired by Kratos, a San Diego-based provider of mission-critical products and services for the U.S. federal government. Among its core offerings are weapon systems sustainment, military weapon range operations and network engineering services.
On Nov. 15 it was announced Kratos raised its offer for HBE to $8.20 a share — or $51 million based on the shares outstanding — trumping a late bid from Diebold.
HBE will become part of Kratos’ Public Safety & Security (PSS) business segment. HBE is a provider of system integration services, including the design, engineering and operation of command and control systems for the protection of strategic assets and critical infrastructure. (You can read more about the HBE’s company history here.)
In a statement, Ben Goodwin, president of Kratos’ PSS business, said the addition of HBE creates the potential for significant organic growth opportunities for Kratos and its public security and safety business.
“Combining our business with one of the leading homeland security solutions and high end security system design and engineering services providers in the industry today strategically strengthens our overall capabilities and enhances our customer offerings and overall contract portfolio,” Goodwin says.
The acquisition positions Kratos to pursue new and larger critical national and homeland security projects for the protection of critical infrastructure in the United Sates that the company previously could not have pursued, according to Kratos’ statement.
“We also see the opportunity for significant cross selling between the two businesses, which we intend on immediately pursuing,” Goodwin says.
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