Kratos to buy CPI ASC Signal Division

Kratos Defense & Security Solutions said today it will acquire Communications and Power Industries' ASC Signal Division for $35 million in cash.

ASC manufactures "high-performance, highly engineered antenna systems for satellite communications, radar, electronic warfare (EW), and high-frequency (HF) applications."

Late last month, the Justice Department announced that Odyssey Investment Partners, its portfolio company Communications and Power Industries and General Dynamics must divest CPI ASC Signal Division to proceed with the planned acquisition of General Dynamics SATCOM Technologies.

"Without the divestiture, the proposed acquisition would substantially lessen competition for the sale of large geostationary satellite antennas in the United States," the department said, adding that CPI and GD SATCOM are two of only a few companies that design, build and sell these antennas.

CPI completed its acquisition of the General Dynamics unit earlier this month.

Kratos said today the ASC Signal Division deal is expected to close within two months.

"The acquisition brings numerous synergies to Kratos' core space business," the company said. "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."

Kratos said Tony Russell, who led ASC, will run the antenna/RF operating unit within Kratos.