- Kratos signed a $356.3 million agreement to acquire Orbit Technologies using cash on hand, with Orbit to be integrated into the Kratos Microwave Electronics Division in Jerusalem.
- Orbit supplies satellite-based communication systems for air, sea, land, and unmanned platforms with customers in Israel, the United States, Europe, and the Pacific region.
Kratos Defense & Security Solutions announced it has entered into a definitive agreement to acquire Israeli-based Orbit Technologies Ltd. for $356.3 million in a transaction that the company says will be funded with existing cash on hand.
Orbit is a supplier of satellite-based communication systems used across air, sea, undersea, land, and unmanned platforms, supporting military and commercial customers in Israel, the United States, Europe, the Pacific region and other markets.
According to Kratos, Orbit will become part of the Kratos Microwave Electronics Division, which is headquartered in Jerusalem. The company said the acquisition is expected to be immediately accretive across most financial metrics once finalized. The deal is scheduled to close by the end of March 2026, pending normal closing requirements, including regulatory and national security-related approvals associated with the acquisition of an Israel-based defense company by a non-Israeli firm.
Orbit provides communications hardware and systems that are integrated into aircraft, naval vessels, ground vehicles, and unmanned platforms. The company supplies its systems to major air forces, defense prime contractors, and newer commercial space and defense firms. Kratos said the acquisition is intended to strengthen its position in markets where demand for satellite communications and unmanned platform integration continues to expand.
In a statement, Yonah Adelman, president of Kratos Microwave Electronics, said the combined capabilities of both companies create immediate opportunities. “We are truly excited about the combining of Orbit with Kratos, both leading technology companies in the microwave, communications and other military and national security related areas,” Adelman said. He noted that the division has been focused on growing its presence in unmanned systems and satellite-based communications and said the merger represents a “1 + 1 = 3 or more situation” for customers and partners. Adelman said Kratos has already identified areas where the company’s microwave technologies and Orbit’s communications systems could be leveraged together.
Kratos President and CEO Eric DeMarco emphasized that Orbit aligns closely with Kratos’ strategic acquisition criteria. “Orbit checks every box in a Kratos acquisition, including outstanding leadership and culture, mission-committed employees and leading technology, with real, battle-proven hardware, products and systems that are in Kratos’ sweet spot,” DeMarco said. He noted that Orbit’s customers overlap significantly with Kratos’ existing defense and national security clients, including in the United States, Israel, Europe, India and other regions.
DeMarco also pointed to timing. He said there is “a global recapitalization of weapon systems underway,” and that integrating Orbit will position Kratos to meet future demand in communication and control systems tied to next-generation platforms. He also described the transaction as a negotiated process intended to minimize disruption to both companies and maintain focus on national security priorities.
Orbit CEO Daniel Eshchar described the acquisition as a step toward broader market access. “I am honored by the opportunity to join a leading global defense company,” Eshchar said. “This milestone marks a significant step for Orbit, enabling us to expand our business operations and strengthen our presence in the U.S. defense market.”