Kratos Defense & Security Solutions, Inc., a leading National Security Solutions provider, has announced that it will acquire CPI ASC Signal Division, Inc. (ASC) from Communications & Power Industries LLC (CPI) for $35 million in cash. ASC Signal is a manufacturer of high-performance, highly engineered antenna systems for satellite communications, radar, electronic warfare (EW), and high-frequency (HF) applications. The transaction is expected to close within the next 60 days, subject to normal and customary closing conditions and regulatory approvals.
The products, business, and North American manufacturing operations that Kratos is acquiring bring 60 years of innovation in high-performance antenna products used in a variety of mission-critical space applications ranging from Telemetry, Tracking & Command (TT&C) to Satellite Communications and Earth Sensing & Observation for military and commercial satellites in low (LEO), medium (MEO) and geostationary (GEO) orbits. With an expanded portfolio that now includes transportable and fixed earth station antennas ranging from 2.4-meter to 18-meter in diameter, radar antennas for air traffic control and weather applications, and lines of High-Frequency (HF) and specialty antennas, Kratos is well-positioned to meet the current and future needs of the combined Kratos and ASC customer base.
Earth station antennas are in high and growing demand, especially as satellite capacity increases with the launch of more and more High-Throughput Satellites (HTS) and small satellite mega-constellations that require a substantial ground infrastructure to operate. In particular, they are a critical part of government strategic and tactical missions, especially for defense and intelligence operations, and are also used widely in the commercial world.
The acquisition brings numerous synergies to Kratos’ core space business. To date, the part of Kratos focused on antennas has specialized in planning and implementing full-scale large, complex systems for which the antennas are just a part, and often employing antennas from multiple manufacturers. The ASC antennas will help expand that business, especially among U.S. government and national security customers, while Kratos’ global reach and broad product portfolio will complement ASC’s solutions. Kratos’ space business offers a wide variety of products and solutions across the satellite ground segment, including RF infrastructure, systems management and mission assurance products that will bring system synergies to an expanded antenna offering and to ASC’s existing customers.
Phil Carrai, President of Kratos’ Space, Training and Cybersecurity Division, commented that the addition of ASC provides an important building block for Kratos’ continued growth as the industry’s broadest supplier of advanced products across the ground segment. Beyond the strong product lines and North American manufacturing base, it brings the ability for them to advance their strategy of building important ground segment technologies directly into antennas and better-integrating antennas into increasingly virtualized ground systems. In addition, the acquisition brings engineering expertise and a product platform for growing Kratos’ solutions in the Q and V band markets that will become a critical part of the industry’s future.
