Kratos Defense & Security Solutions – KTOS – To acquire 100 percent of the stock of Composite Engineering

Kratos Defense & Security Solutions, Inc. (Nasdaq:KTOS), a leading National Security Solutions provider, announced that it has entered into a definitive agreement to acquire 100 percent of the stock of Composite Engineering, Inc. (CEI or the Company), a vertically integrated manufacturer and developer of unmanned aerial target systems and composite structures used for National Security programs.

KTOS currently provides electronics and avionics that are on board CEI aircraft and KTOS also provides ground flight control stations and electronics for the command and control of CEI aerial systems. CEI aircraft are made from composite materials in a secure, state-of-the-art manufacturing facility and as a result have industry leading flight and representation characteristics. CEI’s market leading drones are designed to replicate some of the most lethal aerial threats facing this nation’s Warfighters and strategic assets. CEI domestic programs as a prime contractor include the U.S. Air Force AFSAT, U.S. Navy SSAT and as a Major sub-contractor include the U.S. Air Force Miniature Air Launched Decoy (MALD) and the U.S. Navy Multi-Stage Supersonic Target (MSST). The CEI suite of unmanned drones includes the BQM-167A/I, the BQM-177A/I and the Firejet. They are all jet engine powered, have advanced threat representative flight performance characteristics, including subsonic and sustained supersonic airspeed capability for the BQM-177A/i, external and internal payload capability and demonstrated altitudes from sea skimming to 50,000 ft.

Eric DeMarco, Kratos’ President and CEO, said, “CEI is clearly a world leader in the design, engineering, development, manufacturing and production of leading edge unmanned aerial targets and airframe structures. Similar to the Kratos Aegis Readiness Assessment Vehicles, or ARAVs, certain of CEI’s products are also designed to replicate some of the most advanced aerial threats and potential adversary fighter aircraft in the world today, including next generation threats.   Additionally, certain CEI products and aerial systems support leading edge electronic warfare programs, another area where Kratos is particularly well positioned.”

Amy Fournier, President of CEI, said, “Today is a defining step in CEI’s journey to build the premier aerial targets and aerial drone company in the world. CEI has experienced phenomenal growth over the past few years and the future is bright, which is one of the reasons we elected to take a meaningful portion of the transaction proceeds in Kratos common stock. We are committed to the success of the combined business and look forward to being a part of its future growth.”

About Kratos Defense & Security Solutions – KTOS

Kratos Defense & Security Solutions, Inc. (KTOS) is a specialized National Security technology business providing mission critical products, services and solutions for United States National Security priorities.

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Post Written By: Ed Liston Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.