Kratos Bolsters Defense Portfolio: Acquires Orbit Technologies for $356.3M

Kratos Defense & Security Solutions, Inc., a technology company operating in the defense, national security, and global markets, announced today that it has signed a definitive agreement to acquire 100 percent of the ordinary shares of Orbit Technologies Ltd (ORBI.TA) for $356.3 million. Kratos anticipates funding the acquisition using cash currently on its balance sheet.

Orbit is a premier global supplier of mission-critical, satellite-based communication systems. These systems are used in mobile and unmanned aerial, seaborne, undersea, and land platforms, military vehicles, and other specialized systems. Orbit provides its hardware, products, and systems to major air forces, established prime contractors, and emerging defense and space companies worldwide, including in Israel, the United States, Europe, and the Pacific region.

Once the transaction is complete, Orbit will report through Kratos’ Microwave Electronics Division (KMED), which is headquartered in Jerusalem, Israel. The acquisition of Orbit is expected to be immediately accretive across virtually every financial metric for Kratos.

Executive Commentary on the Strategic Acquisition

Yonah Adelman, President of Kratos Microwave Electronics, expressed his enthusiasm for the merger: “We are genuinely excited about combining Orbit with Kratos. Both are leading technology companies in the microwave, communications, and other military and national security domains. KMED has been strategically focused on expanding its presence in the rapidly growing global unmanned systems and satellite-based communications markets. We believe the synergy between Kratos and Orbit is a 1 + 1 = 3 or greater scenario for our customers, partners, employees, and stakeholders. We have already identified areas where combining Kratos’ microwave technology with Orbit’s communications technology can introduce differentiating, cutting-edge capabilities to the market. We eagerly welcome Orbit to the Kratos family.”

Eric DeMarco, President and CEO of Kratos, emphasized the strategic fit: “Orbit checks every box for a Kratos acquisition, including outstanding leadership, a strong culture, mission-committed employees, and leading technology with real, battle-proven hardware, products, and systems that align perfectly with Kratos’ core focus. Furthermore, many of Orbit’s major customers in Israel, the United States, Europe, India, and other regions are existing Kratos customers, further strengthening our conviction in the projected success of this transaction for all parties involved, including Kratos shareholders. The combination of Kratos’ microwave technology and Orbit’s communications technology is anticipated to create new growth opportunities that are currently unavailable to either company on a standalone basis. With the global recapitalization of weapon systems underway, Orbit significantly advances Kratos’ position to capitalize on this trend. Importantly, this was a negotiated transaction between Kratos and Orbit, which significantly reduced disruption to both companies' operations and our commitment to our National Security-focused mission.”

Daniel Eshchar, CEO of Orbit Communication Systems, commented on the future: “I am honored by the opportunity to join a leading global defense company. This milestone marks a significant step for Orbit, enabling us to expand our business operations and strengthen our presence in the U.S. defense market.”

Transaction Details and Closing

Orbit’s headquarters are located in Israel. The acquisition is expected to close by the end of March 2026, subject to the completion of customary closing conditions, particularly those related to the acquisition of an Israel-based national security company by a non-Israeli-based entity. Kratos will not incorporate Orbit’s future financial forecasts into its own until after the acquisition is officially consummated.