Securitas to acquire Kratos' security division
Securitas said it has agreed to acquire Kratos' Public Safety and Security (PSS) division from Kratos Defense & Security Solutions Inc. for approximately US$69 million 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.
According to the company, Kratos Public Safety and Security (KPSS) is ranked as a top 10 systems integrator in the United States with annual sales of approximately US$135 million. Kratos employs 400 people.
A statement describes Kratos' PSS focus as "electronic security projects for commercial customers with special expertise in transportation, petrochemical, health care and education vertical markets.... KPSS has a wide breadth of capabilities including access, video, intrusion and fire solutions supported by on-going maintenance, inspections and monitoring services."
KPSS will be combined with Securitas Electronic Security, the company's security systems integration division.
“This acquisition supports Securitas' global strategy and strengthens our position as the global knowledge leader in protective services,” said Alf Göransson, president and CEO, Securitas AB, in a statement.
In a separate release issued by Kratos, Eric DeMarco, Kratos president and CEO, said, "The sale of PSS virtually completes the successful execution of Kratos' strategy to be a pure play defense high technology, product and systems provider. This divestiture will allow us even greater focus on our high growth core businesses including unmanned aerial drones, satellite communications, missile defense, training systems and microwave electronics."
Securitas purchased Diebold's electronic systems business for US$350 million in 2015, leading to the formation of Securitas ES. The KPSS acquisition is expected to close in the second quarter of 2018, subject to regulatory approval.