Kratos To Divest Its Public Safety & Security System Integration Business

(RTTNews) - Kratos Defense & Security Solutions, Inc. (KTOS) announced the company has signed a definitive agreement to divest its Public Safety & Security System Integration Business for $69 million in cash to Securitas Electronic Security, Inc., subject to a customary net working capital adjustment at closing. Kratos expects to ultimately receive approximately $70 million of net cash proceeds from the transaction.

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."

Kratos' first-quarter financial guidance for revenues excluding the PSS business is $140 to $150 million, as compared to $132.0 million for the first quarter of 2017, and first quarter 2018 Adjusted EBITDA guidance of $9 to $11 million, as compared to $10.2 million for the first quarter of 2017.

Kratos' full year 2018 financial guidance for revenues excluding the PSS business is $640 to $650 million, as compared to $603.2 million for the full year of 2017, and full year 2018 Adjusted EBITDA guidance of $55 to $59 million, as compared to $47.5 million for the full year of 2017.