The Firm recently represented the underwriters, led by Robert W. Baird & Co. Incorporated, in connection with the public offering of 16,428,571 shares of common stock (including 2,142,857 shares sold pursuant to the underwriters’ exercise of their option to purchase additional shares) of Kratos Defense & Security Solutions, Inc. Kratos intends to use the net proceeds from the offering (i) to continue to make important capital expenditures to scale operations and meet the growing demands of The Department of War and our National Security customers with respect to existing programs, recently awarded contracts and new opportunities, (ii) to continue to invest in new product, system and software product development, including building and being first to market with National Security Systems, including in coordination with our customers and partners, (iii) to strengthen the Company’s balance sheet to allow us to be responsive to anticipated contract awards from our large, strategic pipeline of opportunities, (iv) to fund the recent acquisition of Nomad, pending acquisition of Orbit and select future strategic M&A opportunities, and (v) for general corporate purposes, including to pay fees and expenses in connection with the offering.
Kratos is a technology, hardware, products, system and software company addressing the defense, national security, and commercial markets. Kratos makes true internally funded research, development, capital and other investments, to rapidly develop, produce and field relevant solutions that address its customers’ mission critical needs and requirements.
The Simpson Thacher team for the transaction included David Azarkh, Patrick Baron and Erin Camia (Capital Markets); Michael Mann and Kris Liu (Tax); Pasco Struhs (Executive Compensation and Employee Benefits); Corina Holland and Tally Smitas (Intellectual Property); and Jennie Getsin (FINRA).