Kratos Defense & Security Solutions/Integral Systems
On May 16, 2011, Kratos Defense & Security Solutions, Inc. (Nasdaq: KTOS) has entered into a definitive agreement to acquire all of the outstanding stock of Integral Systems, Inc. (Nasdaq: ISYS) for $5.00 per share in cash and 0.588 shares of Kratos common stock. The fixed exchange ratio of 0.588 for each share of Integral Systems common stock was determined based on a Kratos per share price of $13.60 which is the 30-day trading average of Kratos common stock.
The transaction is expected to be accretive to Kratos' earnings per share, margins and cash flow, excluding transaction-related and financing costs, with expected revenues of $175 million and annualized adjusted EBITDA of approximately $35 million, after elimination of duplicative or redundant public company and corporate level general and administrative costs.
Jefferies & Company Inc. acted as exclusive financial advisor to Kratos on the Integral Systems transaction. B. Riley & Company and its founder Bryant Riley are strategic advisors to Kratos Defense & Security Solutions in the execution of Kratos' strategic plan to build the premier technology based National Security contractor in the industry.
The transaction is expected to be accretive to Kratos' earnings per share, margins and cash flow, excluding transaction-related and financing costs, with expected revenues of $175 million and annualized adjusted EBITDA of approximately $35 million, after elimination of duplicative or redundant public company and corporate level general and administrative costs.
Jefferies & Company Inc. acted as exclusive financial advisor to Kratos on the Integral Systems transaction. B. Riley & Company and its founder Bryant Riley are strategic advisors to Kratos Defense & Security Solutions in the execution of Kratos' strategic plan to build the premier technology based National Security contractor in the industry.
