Herley to be bought for $270M

Herley Industries Inc., Lancaster, said today it agreed to purchased for $270 million in cash by Kratos Defense & Security Solutions Inc. The purchase price amounts to $19 a share.

The deal was announced shortly after the stock market closed. Herley shares closed down 17 cents at $16.25 in Nasdaq trading.

Herley manufactures microwave technology products for the defense, aerospace and medical industries.

John A. Thonet, its chairman, said the deal resulted from a company review of strategic alternatives to enhance shareholder value.

The deal, which is expected to be completed by March 31, requires a majority of Herley's outstanding shares to be tendered by stockholders. It also will require a federal antitrust review.

Herley has 1,000 employees and had a profit last fiscal year of $7 million on revenue of $188 million.

Kratos, San Diego, provides products and services and solutions for U.S. national security related to weapons systems, engineering and surveillance. It has 2,800 workers and had a net loss in its last reported year of $42 million on revenue of $335 million.    -Paul Schweizer