LONDON — British defense company Ultra Electronics has further increased its position in the US market with the June 1 announcement that it is paying US $265 million to acquire the electronic products division (EPD) of Kratos Defense & Security.

Ultra said the acquisition, which remains subject to US regulatory approval, will help it establish a major presence in a US electronic warfare market that is growing at more than 3 percent annuallyper annum.

EPD designs and produces RF and microwave integrated systems and components for use in electronic warfare, radar, communications, missiles and other market areas. Key platforms include the P-8A Poseidon, EA-18G Growler and Trident missile.

In a statement, Ultra said electronic warfare is a core market in which it is under-represented. at present. The acquisition also will augment the company's presence in Australian and Canadian markets, they said.

The purchase of EPD, formerly known as Herley Industries, is the latest in a string of small acquisitions in various sectors of the US market in recent times. Forensic Technology, 3 Phoenix and ICE were all acquired last year.

North America already dominates Ultra revenues, accounting for 44 percent of its £713 million (US $1.08 billion) sales last year with the Pentagon being its biggest single customer.

Ultra operates globally in niche defense, security, transport and energy sectors.

Rakesh Sharma, Ultra's CEO, said EPD adds "significant core technologies in the RF and microwave sectors and complements the group's communications and sensor portfolio. EPD has a strong position on supported legacy programmes as well as future strategic ones. Together, we have the technology, innovation and market reach which will enable us to enhance our market position in the attractive EW market, within the US and internationally."

EPD will become part of Ultra's Tactical & Sonar Division and renamed Ultra Electronics Herley Industries. Richard Poirier remains as president.

Kratos acquired Herley Industries in 2011 for $270 million.

The Kratos-General Microwave Israel and Kratos GMI-Eyal businesses operated by EPD are not part of the sale.

Email: achuter@defensenews.com.

Andrew Chuter is the United Kingdom correspondent for Defense News.

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