US defense tech firm Kratos to acquire Israel's Orbit for $356.3m

Kratos Defense & Security Solutions Inc. has agreed to acquire Orbit Technologies Ltd., an Israel-based provider of satellite communication systems, for US$356.3 million.

Kratos will purchase all ordinary shares of Orbit, with payment expected to come from Kratos’ existing cash.

Orbit supplies satellite-based communication hardware for mobile, unmanned, seaborne, undersea, and land systems, including military vehicles and other platforms, with customers in Israel, the US, Europe, and the Pacific.

After the acquisition closes, Orbit will become part of Kratos’ Microwave Electronics Division, which is headquartered in Jerusalem.

The companies expect the transaction to close by the end of March 2026, pending regulatory and customary approvals for an acquisition of an Israel-based national security company by a non-Israeli firm.

🔗 Source: Kratos

🧠 Food for thought

Implications, context, and why it matters.

Orbit’s undisclosed financials leave valuation multiples unclear

Kratos will pay US$356.3 million. Orbit has not disclosed revenue or backlog. Investors cannot tell if the Israeli Satellite Communications (SATCOM) provider fetched a premium or a discount.
The target did about C$100 million in 2024 revenue 1. The price equals about 4.7 times sales in U.S. dollars. Profit margins and growth are unknown. Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) also remains undisclosed.
Impact on Kratos remains unclear without the unit’s contribution versus the Microwave Electronics Division. It could be a small add-on or a move that reshapes the product mix and reach.

Military SATCOM procurements in 2025 signal near-term revenue opportunities for terminal vendors

United States solicitations include Protected Tactical SATCOM-Global for secure satellite communications. It offers up to four Indefinite Delivery/Indefinite Quantity (IDIQ) awards with a December 2024 deadline 2. SATCOM Modernization runs into late 2025, while wideband efforts stay active 3 4.
Defense suppliers can pursue these procurements to win share in mobile, maritime, and unmanned terminals (user antennas and modems) where Orbit competes. Satcom hardware makers face fewer rivals if buyers like Kratos keep acquiring peers.
Public equity investors can build positions in listed SATCOM terminal specialists before awards expected in 2025 to 2026. Winning bids often lift shares and validate revenue pipelines in defense communications.