Kratos Defense & Security Solutions plans to offer $209 million in common stock for sale to fund general corporate purposes, including the acquisition of other companies.
The company is to offer 13.5 million shares of its common stock in a public offering at a price of $16.25 per share, it announced on 18 June. The firm’s stock closed at $16.20 per share on 19 June.
“Kratos expects to use the net proceeds from this offering for general corporate purposes, including for potential strategic ‘tuck-in’ acquisitions, to further position the company for projected growth from new and anticipated increased production and to facilitate its long-term strategy,” the firm says.
The company has acquired several businesses in recent years, including satellite antenna manufacturer ASC Signal, as well as small jet turbine manufacturers Technical Directions and Florida Turbine Technologies.
Kratos makes a variety of military products including unmanned air vehicles (UAVs), target drones, satellite communications equipment, and mixed-reality training equipment, as well as ground-based hardware for command, control, computers, communications, cyber, intelligence, surveillance and reconnaissance.
The company is perhaps best known for its XQ-58A Valkyrie, an experimental low-cost stealthy UAV designed in partnership with the US Air Force Research Laboratory.