US Defense Firm Kratos Buys Israel’s Orbit Technologies in $356 Million Deal

In a major transnational defense industry move, U.S.-based Kratos Defense & Security Solutions has announced a definitive agreement to acquire 100% of Israel’s Orbit Technologies Ltd for $356.3 million in cash. The acquisition marks one of Kratos’ most significant international expansions to date, positioning the company as a stronger global player in satellite-based communications, microwave electronics, and defense-grade connectivity systems.

Under the agreement, Orbit will be fully integrated into Kratos’ Microwave Electronics Division (KMED), which will now be headquartered in Jerusalem, Israel. The deal, subject to regulatory approvals concerning the acquisition of an Israel-based defense firm, is expected to close by March 2026. Once finalized, the transaction will make Orbit a wholly owned subsidiary of Kratos, aligning with the U.S. company’s strategy to build a diversified portfolio of advanced communication and control systems for military, space, and unmanned platforms.

Expanding Capabilities in Satellite and Defense Communications

Orbit Technologies is a well-established supplier of satellite communication (SATCOM) systems, tracking antennas, and airborne communication terminals used by armed forces and government agencies worldwide. Its systems are deployed across fighter jets, unmanned aerial vehicles (UAVs), naval vessels, and ground stations, offering reliable high-bandwidth communications in contested or remote environments.

Key product lines include:

• AL-4000 and AL-5000 series tracking antennas for ground and naval SATCOM systems, supporting L-, S-, and Ka-band frequencies.

• Airborne communication systems enabling broadband satellite links for aircraft and UAVs.

• Telemetry and data links for missile tests and space launch tracking.

• Maritime stabilized communication platforms for naval and commercial vessels.

The company’s technology is recognized for its battle-proven reliability, compact design, and high-speed tracking capabilities, making it a preferred supplier for military-grade applications. Its systems are already integrated into platforms operated by customers in Israel, the United States, Europe, and the Asia-Pacific region, giving Kratos an immediate global footprint in secure satellite communications.

Strategic Fit with Kratos’ Defense Portfolio

Kratos CEO Eric DeMarco said the acquisition fits perfectly within the company’s broader defense and national security strategy.

“Orbit checks every box in a Kratos acquisition,” he said. “It brings outstanding leadership, a mission-driven workforce, and field-proven hardware. The combination of Kratos’ microwave systems and Orbit’s communications expertise will open new opportunities that neither company could fully capture independently.”

Kratos, headquartered in San Diego, California, is known for its advanced unmanned aerial systems (UAS), tactical jet drones, satellite ground systems, and microwave electronics used in radars and electronic warfare. Integrating Orbit’s communication solutions will allow Kratos to expand end-to-end connectivity offerings — linking its drones, sensors, and space systems through secure satellite and radio-frequency networks.

Yonah Adelman, President of Kratos Microwave Electronics, highlighted the synergy between the two companies, describing the merger as a “1 + 1 = 3” situation that enhances value for both defense and commercial customers.

“Kratos and Orbit are both leaders in communications and microwave technology,” he said. “Together, we will be able to deliver comprehensive solutions across air, sea, land, and space — supporting customers who demand secure, high-performance communications for national defense and intelligence missions.”

Orbit’s Growth and Strategic Value

For Orbit Communication Systems, the acquisition represents a significant milestone. CEO Daniel Eshchar said the partnership would allow the company to accelerate its expansion, particularly in the U.S. defense and space market, where Kratos already maintains long-term relationships with the Department of Defense and intelligence agencies.

“Joining Kratos allows Orbit to leverage a global platform,” Eshchar said. “It’s a natural evolution that strengthens our capabilities and provides new opportunities for innovation and growth.”

The acquisition is expected to be immediately accretive to Kratos across nearly all financial metrics, reflecting Orbit’s strong revenue base and international customer reach. Industry analysts view the deal as a strategic response to rising demand for resilient, multi-domain communications networks, especially those linking unmanned systems and space-based assets.

A Strengthened Global Presence

With this acquisition, Kratos will strengthen its presence in Israel’s high-tech defense ecosystem, gaining access to a region known for its rapid innovation in electronics, avionics, and secure communications. The new Jerusalem-based KMED headquarters will serve as both a regional R&D hub and a base for satellite and microwave product development.

Kratos’ integration plan reportedly includes maintaining Orbit’s existing facilities and workforce, ensuring continuity for its ongoing contracts and customers. The move underscores Kratos’ intent not only to expand geographically but also to deepen its technological expertise in microwave, RF, and space communication systems.

Outlook

Pending regulatory approval, the transaction is slated for completion by March 2026, with integration activities beginning shortly afterward. Kratos has stated that Orbit’s financial performance will not be included in its forward guidance until the acquisition is finalized.

The merger of Kratos and Orbit reflects a broader industry trend of consolidation in defense communications, as companies seek to combine satellite, microwave, and unmanned system capabilities under unified architectures. For Kratos, this deal strengthens its position as a key supplier of integrated communication and control systems across multiple domains — space, air, sea, and ground.

In strategic terms, the acquisition signals Kratos’ growing ambition to become not just a defense electronics manufacturer, but a complete communications and control systems provider — a role increasingly vital in modern network-centric warfare and satellite-enabled defense operations.