Deal Details

Kratos Completes $575.0 Million Follow-On Offering

Industrial

Kratos follow-on offering

Summary

Kratos Defense & Security Solutions, Inc. (“Kratos” or the “Company”) (NASDAQ: KTOS) recently completed a public offering of 14,935,065 shares of its common stock, including 1,948,052 shares sold pursuant to full exercise of the underwriters’ option to purchase additional shares, at a price of $38.50 per share, generating gross proceeds to Kratos of approximately $575.0 million. Kratos expects to use the net proceeds to (i) fund investments and capital expenditures to scale and successfully execute on large, mission critical National Security priorities related to existing programs, recent program awards, and significant high probability pipeline opportunities; (ii) to finance important customer and program targeted acquisitions; (iii) and for general corporate purposes, including pay down of debt and to pay fees and expenses in connection with the offering.

Kratos is an innovative developer of next-generation defense technology solutions in operationally critical areas and has marquee franchise positions in Hypersonics, Propulsion Systems, Microwave Electronics, Space & Satellite Ground Systems, Autonomous Jet Drones, and Battle Command Systems. The Company has established itself as a leader in the DefenseTech sector, rapidly developing and deploying innovative and cost-effective solutions and is uniquely qualified to support strategic initiatives such as the Golden Dome.

Baird served as the lead bookrunner on this offering.

About

Kratos is a technology, products, system, and software company addressing the defense, national security, and commercial markets. Kratos makes true internally funded research, development, capital, and other investments, to rapidly develop, produce, and field solutions that address their customers’ mission critical needs and requirements. At Kratos, affordability is a technology, and they seek to utilize proven, leading edge approaches and technology, not unproven bleeding edge approaches or technology, with Kratos’ approach designed to reduce cost, schedule and risk, enabling us to be first to market with cost effective solutions. Kratos believes that it is known as an innovative disruptive change agent in the industry, a Company that is an expert in designing products and systems up front for successful rapid, large quantity, low cost future manufacturing which is a value add competitive differentiator for their large traditional prime system integrator partners and also to their government and commercial customers. Kratos intends to pursue program and contract opportunities as the prime or lead contractor when they believe that their probability of win (PWin) is high and any investment required by Kratos is within their capital resource comfort level. They intend to partner and team with a large, traditional system integrator when their assessment of PWin is greater or required investment is beyond Kratos’ comfort level. Kratos’ primary business areas include virtualized ground systems for satellites and space vehicles including software for command & control (C2) and telemetry, tracking and control (TT&C), jet powered unmanned aerial drone systems, hypersonic vehicles and rocket systems, propulsion systems for drones, missiles, loitering munitions, supersonic systems, space craft and launch systems, C5ISR and microwave electronic products for missile, radar, missile defense, space, satellite, counter UAS, directed energy, communication and other systems, and virtual & augmented reality training systems for the warfighter.

Industrial

Kratos follow-on offering