Kratos Defense & Security Solutions announced it will acquire CPI ASC Signal Division (ASC) from Communications & Power Industries for $35 million in cash. ASC manufactures engineered antennas for satellite communications, radar, electronic warfare and high frequency (HF) systems.

The acquisition includes the products, business and North American manufacturing operations of CPI’s ASC Signal Division, which has a 60-year heritage in high performance antennas for mission-critical space applications: telemetry, tracking and command, satellite communications, earth sensing and observation, including military and commercial LEO, MEO and GEO satellites.

Phil Carrai, president of Kratos’ Space, Training and Cybersecurity Division, said, “The addition of ASC provides an important building block for Kratos’ continued growth. Beyond the strong product lines and North American manufacturing base, it brings the ability for us to advance our strategy of building important ground segment technologies directly into antennas and better integrating antennas into increasingly virtualized ground systems. In addition, the acquisition brings engineering expertise and a product platform for growing Kratos’ solutions in the Q and V-Band markets that will become a critical part of the industry’s future.”

Kratos said the transaction is expected to close within the next 60 days, after completion of the customary closing conditions and regulatory approvals.

The ASC Signal Division will enhance Kratos’ space business. The part of Kratos focused on antennas specializes in large, complex systems, where antennas are one element. Kratos typically uses antennas from multiple manufacturers. ASC’s antenna capability will help Kratos expand that business, especially with U.S. government and national security customers.

Earth station antennas are seeing high and growing demand, especially as satellite capacity increases with the launch of high-throughput satellites and mega-constellations that require a substantial ground infrastructure. These antennas are a critical part of government strategic and tactical missions, especially defense and intelligence operations.

ASC’s business will benefit from Kratos’ global reach and broad product portfolio. Kratos has various products and solutions across the satellite ground segment that will offer system-level synergies to an expanded antenna portfolio and ASC’s current customers.

Tony Russell, who led ASC and will run the antenna/RF operating unit within Kratos, said, “Kratos has an extremely exciting vision for the future of dynamic ground systems, and we are inspired to become a part of it.”