Acquisition Tech

US Defense Tech Firm Kratos to Acquire Israel’s Orbit for $356.3 Million

• ByStartupStory     |    November 5, 2025

US Defense Tech Firm Kratos to Acquire Israel’s Orbit for $356.3 Million

Kratos Defense & Security Solutions, a leading American defense technology company, has signed a definitive agreement to acquire Orbit Technologies Ltd, an Israel-based mission-critical satellite communication systems provider, for $356.3 million. The acquisition will be funded entirely from Kratos’ cash reserves and is expected to close by the end of March 2026, subject to customary regulatory approvals.

Orbit specializes in satellite-based communication hardware and systems for mobile and unmanned platforms across aerial, maritime, undersea, and land domains, serving major air forces, defense contractors, and emerging space companies worldwide. Its customer base spans Israel, the United States, Europe, and the Pacific region.

Post-acquisition, Orbit will operate under Kratos’ Microwave Electronics Division (KMED), headquartered in Jerusalem. Both companies are known for their advanced microwave, communications, and national security technologies. Kratos President of Microwave Electronics, Yonah Adelman, expressed enthusiasm for the synergy, describing the merger as creating a combined capability greater than the sum of its parts.

Kratos CEO Eric DeMarco highlighted the strong cultural fit, advanced technology, and overlapping customer bases, emphasizing that the transaction strengthens Kratos’ position in the rapidly expanding global unmanned systems and satellite communication markets. He noted the ongoing global recapitalization of weapon systems, saying Orbit’s inclusion advances Kratos’ ability to capitalize on these opportunities.

Orbit’s CEO Daniel Eshchar welcomed the acquisition as a significant step to expand business operations and deepen presence in the US defense market.

Kratos Defense & Security Solutions is a premier technology company specializing in defense, national security, aerospace systems, and advanced weaponry, publicly traded on NASDAQ under the ticker KTOS.

In summary, the acquisition of Israel’s Orbit Technologies by Kratos for $356.3 million represents a strategic move to solidify Kratos’ foothold in satellite communications and expand its portfolio across global defense and space sectors, leveraging combined technical strengths and customer relationships.

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