WASHINGTON (dpa-AFX) - Kratos Defense & Security Solutions, Inc. (KTOS) said Wednesday that it has priced an underwritten public offering of 20 million shares of its common stock at a purchase price of $5.00 per share.
The gross proceeds to the company from this offering are expected to be $100 million, before deducting underwriting discounts and other estimated offering expenses.
The company has granted the underwriters a 30-day option to purchase up to an aggregate of 3 million additional shares of common stock to cover over-allotments, if any.
The offering is expected to close on or about May 14.
The company expects to use the net proceeds from the offering to fund a portion of the cash consideration payable to the shareholders of Composite Engineering, Inc. in connection with its proposed acquisition of Composite Engineering.
Kratos said Tuesday that it has agreed to buy privately held drone maker Composite Engineering, Inc. for $155 million in cash and stock. Kratos will pay $135 million in cash and $20 million in stock to acquire 100% of the stock of Composite Engineering.
To the extent that the net proceeds are not applied to the Composite Engineering acquisition, the company plans to use them for general corporate purposes, including for the acquisition of or investment in other businesses, services and technologies that are complementary to those of the company and other general corporate expenses.
Copyright RTT News/dpa-AFX
© 2012 AFX News
