Securitas Electronic Security’s $69 Million Acquisition of Kratos Defense’ Public Safety & Security System Integration Business

Paul Hastings LLP represented Kratos Defense & Security Solutions, Inc. (Nasdaq: KTOS), a leading National Security Solutions provider, in the Company’s sale of its Public Safety & Security System Integration Business (PSS) for $69 million in cash to Securitas Electronic Security, Inc., subject to a customary net working capital adjustment at closing.

Securitas has agreed to acquire the division Kratos Public Safety and Security from Kratos Defense & Security Solutions, Inc. (NASDAQ: KTOS). The purchase price is approximately MSEK 550 (MUSD 69) on a cash and debt-free basis. The acquisition is expected to be neutral to Securitas earnings per share in 2018 and 2019, and accretive as of 2020.

Kratos Public Safety and Security (KPSS) is ranked as a top 10 system integrator in the United States. The operation has annual sales of approximately MSEK 1 100 (MUSD 135) and includes 400 employees. The primary focus is electronic security projects for commercial customers with special expertise in transportation, petrochemical, healthcare, and education vertical markets. The business provides design, engineering, installation and service of advanced integrated security technology and systems. KPSS has a wide breadth of capabilities including access, video, intrusion, and fire solutions supported by on-going maintenance, inspections, and monitoring services.

KPSS, which is to be combined with Securitas Electronic Security, Inc., aligns well with Securitas Electronic Security’s current operations and strategic focus. The acquisition will expand Securitas’ electronic security platform in the United States by strengthening field operation capabilities and adding local branch infrastructure with highly skilled employees. It supports Securitas’ strategy of providing protective services across the entire Securitas North American customer base, and brings increased value to our customers.

Kratos Defense & Security Solutions, Inc. operates as a defense contractor and security systems integrator for the federal government and for state and local agencies. The company, led by Eric M Demarco, Kevin Walden and David M Carter, in 2017 recorded $751 Million Revenues.

Corporate Partner Teri O’Brien (Picture) led the Paul Hastings team, which also included associates Melissa Garcia and Taylor Denson.

Involved fees earner: Teri O’Brien – Paul Hastings; Melissa Garcia – Paul Hastings; Taylor Denson – Paul Hastings;

Law Firms: Paul Hastings;

Clients: Kratos Defense & Security Solutions Inc.;