The University of Alabama board of trustees late Tuesday approved the sale of Southern Research’s engineering division to Kratos Defense and Security Solutions, based in San Diego, California.
The prospective buyer would pay $80 million for the division, according to documents provided by the board. That deal includes $75 million in cash and $5 million in stock.
Kratos plans to maintain operations in Birmingham and expand the team’s work in the aerospace and defense industry, adding 150 jobs in the years ahead.
Proceeds from the sale will help Southern Research purchase equipment and hire staff to support a new biotech center.
“We are recalibrating our strategy and mission to grow our community of science and recruit top scientific talent to Birmingham,” said Josh Carpenter, president and CEO of Southern Research. “This is a win for Southern Research, our engineering team and Alabama.” Southern Research, founded in 1941, is a nonprofit scientific research organization that employs 250 scientists and professional staff. The company is an affiliate of the University of Alabama at Birmingham.