Kratos (KTOS) Nosedives 14% After Acquisition Announcement

We recently published 10 Stocks Left Behind Amid Wall Street Cheer. Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) is one of the worst-performing stocks on Wednesday.

Kratos saw its share prices decline by 14.20 percent on Wednesday to close at $77.41 apiece as investors turned cautious about its full acquisition of Israel-based Orbit Technologies for $356.3 million.

In a statement, Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) said it signed a definitive agreement with Orbit for the acquisition of a 100-percent stake, which will be fully funded through cash.

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Orbit is a global provider of mission-critical satellite-based communication systems for mobile and unmanned aerial, seaborne, undersea, and land systems, military vehicles, and other systems that services to major air forces, traditional prime contractors, and emerging new defense and space companies.

“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. Additionally, major customers of Orbit are also existing customers of Kratos, including in Israel, the United States, Europe, India and elsewhere, adding to our conviction in this transaction’s projected success for all parties involved, including Kratos shareholders,” said Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) President and CEO Eric DeMarco.

Meanwhile, Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) also announced a strong earnings performance in the third quarter of the year, with net income jumping 172 percent to $8.7 million from $3.2 million in the same period last year.

Revenues increased by 26 percent to $347.6 million from $275.9 million year-on-year.

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Disclosure: None. This article is originally published at Insider Monkey.