US-based Kratos Defense & Security Solutions has announced it will acquire Israel-based Orbit Technologies Ltd. for $356.3 million in cash, a move that highlights the growing strategic importance of Israel’s defense-tech ecosystem in global military communications.
Orbit, headquartered in Israel, is a leading company providing satellite-based mobile communications for airborne, maritime, and land platforms. Its systems are deployed by major air forces, prime contractors, and emerging defense and space companies across Israel, the United States, Europe, and the Pacific.
The company will be integrated into Kratos’ Microwave Electronics Division, which is based in Jerusalem, strengthening Kratos’ footprint in Israel while expanding its reach into Orbit’s established customer base.
Technology validation
Kratos CEO Eric DeMarco described Orbit as “checking every box in a Kratos acquisition,” with “real, battle-proven hardware, products and systems.” He emphasized its immediate accretive impact on financial performance and its alignment with Kratos’ growth strategy.
According to DeMarco, Orbit and Kratos share the same customers in Israel, the US, Europe, India and elsewhere. The deal is expected to enhance Kratos’ competitive position in secure, resilient communications-an increasingly vital capability for both conventional and unmanned military platforms.
“There is a global recapitalization of weapon systems underway, and Orbit significantly advances Kratos’ position to take advantage of this,” DeMarco added.
For Israel, the acquisition represents a validation of the country’s defense-tech ecosystem, which has become a global hub for innovation in satellite communications, aerospace, and unmanned systems. By anchoring Orbit within Kratos’ global operations, Israeli-developed technologies will have an impact on the communications backbone of next-generation military platforms.
Daniel Eshchar, CEO of Orbit Communications Systems said that the deal is a “significant step for Orbit, enabling us to expand our business operations and strengthen our presence in the US defense market.”
Yonah Adelman, President of Kratos Microwave Electronic said that the company has been “methodically focused on growing its presence in the rapidly expanding global unmanned systems and satellite-based communications market areas,” and that deal “could bring differentiating, leading capabilities to the market.”
This deal between the two companies underscores the deepening ties between US and Israeli defense industries, positioning Israel not only as a supplier of advanced technologies but as a strategic partner in shaping the future of secure communications and unmanned systems worldwide.
The acquisition is expected to close by the end of March 2026, pending the completion of standard closing conditions, including as specifically related to an acquisition of an Israel-based national security company by a non-Israel based company.