Mergers & Acquisitions

Mergers & Acquisitions

August 01, 2011

Integral Systems Acquired by Kratos Defense & Security Solutions Inc.

Integral Systems (News - Alert) Inc., a wholly-owned subsidiary of Kratos Defense & Security Solutions Inc., completed the acquisition through a reverse merger. Kratos is a National Security Solutions provider.

In a release, Phil Carrai, president of Kratos Technology & Training Solutions, said, “Together, Kratos and Integral Systems represent a force multiplier in our ability to bring mission critical communications and C5ISR solutions to our customers. With its products used in approximately 80% of satellite operations, Integral is well known as the leader in ground systems, signal processing and other areas of satellite command and control, but it is also at the cutting edge of advanced technologies for Unmanned Aerial Vehicles (UAVs), situational awareness, remote management and electronic warfare that fir naturally into the Kratos portfolio of solutions for assuring the availability, reliability, and security of mission critical systems for defense, intelligence and commercial operations.”

NASDAQ global select market ceased trading of Integral Systems common stock as a result of this merger. Each outstanding share of Integral Systems was cancelled and converted into the right to receive $5.00, and the issuance of 0.588 shares of Kratos common stock.

President and CEO of Integral Systems Paul Casner said, “This transaction brings together two of the leading high technology companies. Together we will be able to bring our customers a broader array of advanced technologies to meet their most critical needs while creating rich opportunities for our employees. The combination of Integral Systems and Kratos is a win-win.” 

Kratos’ core capabilities include providing mission critical products, sophisticated engineering, manufacturing and system integration offerings for National Security platforms and programs. Their areas of expertise also include Combat Systems, Computing, Intelligence, Surveillance and Reconnaissance (C5ISR), Command, Control, Communications, Cyber Warfare, Unmanned systems, Cyber security, Critical infrastructure security, and Weapons systems sustainment.

President and CEO of Kratos, Eric DeMarco, emphasized that the combined company will have more robust product offerings to their customers and also welcomed Integral Systems employees. He envisions that the combined workforce will have greater personal and professional opportunities and enhanced organic growth. He also said that Kratos employee culture was entrepreneurial, extremely dedicated and technical in nature.

Kratos exclusive advisor for acquisition of Integral Systems was Jefferies & Company, Inc. Their strategic financial advisors were B. Riley & Company.

More information about Kratos is available at

Calvin Azuri is a contributing editor for TMCnet. To read more of Calvin’s articles, please visit his columnist page.

blog comments powered by Disqus