Kratos Defense & Security Solutions, an American defense technology firm, is set to acquire Israel-based Orbit Technologies for $356.3 million.
Kratos said it signed a definitive agreement, under which it will purchase all ordinary shares of Orbit with cash on its balance sheet. The deal is expected to close by the end of March 2026, pending regulatory approvals for foreign acquisitions involving national security technology.
Orbit CEO Daniel Eshchar said joining Kratos represents a significant step in expanding Orbit’s global defense presence, particularly in the U.S. market.
What Does Orbit Technologies Contribute to Kratos’ Portfolio?
Orbit Technologies specializes in providing satellite-based communication systems tailored for mobile platforms. Its technology is currently deployed across a wide range of assets, including unmanned vehicles, airborne systems, maritime vessels and land platforms.
These systems are utilized by key defense contractors, air forces and commercial space companies globally, with established customer bases in the United States, Europe, Israel and the Pacific region.
Upon closing the transaction, Orbit will operate under the Kratos Microwave Electronics Division, headquartered in Jerusalem. Kratos said it expects the acquisition to be immediately accretive across most financial metrics.
How Does the Acquisition Align With Kratos’ Strategy?
“KMED has been methodically focused on growing its presence in the rapidly expanding global unmanned systems and satellite-based communications market areas, and we believe that Kratos and Orbit is a 1 + 1 = 3 or more situation for our customers, partners, employees and stakeholders,” said Yonah Adelman, president of KMED. “We have already identified areas where Kratos’ microwave technology combined with Orbit’s communications technology, could bring differentiating, leading capabilities to the market.”
Mirroring Adelman’s statement, Eric DeMarco, president and CEO of Kratos, said the acquisition will advance his company’s position to take advantage of the global recapitalization of weapon systems. “The combination of Kratos’ microwave technology and Orbit’s communications technology is expected to provide new growth opportunities that are not currently available to either company on a stand-alone basis,” he explained.
Stifel is serving as Orbit’s exclusive financial adviser.