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  • Continue to grow Mercury’s global avionics and mission systems business
  • Complementary capabilities strengthen position at the forefront of military digital convergence
  • Strong growth profile driven by the modernization of platforms, the delamination of the supply chain, innovative products
  • Upgrades Mercury’s Display Offerings to Include Integrated Smart Displays
  • Expands mission processing capabilities, adding communications management

ANDOVER, Mass., Sept. 27, 2021 (GLOBE NEWSWIRE) – Mercury Systems, Inc. (NASDAQ: MRCY, www.mrcy.com), a leader in reliable and secure critical technologies for aerospace and defense, announced today ‘ hui that it signed a definitive agreement to acquire Avalex Technologies Corporation (“Avalex”). Based in Gulf Breeze, Florida, Avalex is a supplier of critical avionics, including rugged displays, integrated communications management systems, digital video recorders and warning systems.

Pursuant to the terms of the agreement, Mercury will acquire Avalex for all of its cash, subject to net working capital and net debt adjustments. The acquisition should be treated as a sale of assets for tax purposes. The acquisition and associated transaction costs are expected to be funded by a combination of cash on hand and Mercury’s existing revolving credit facility.

Avalex is currently expected to generate revenue of approximately $ 40 million for the twelve months ending December 31, 2022, with adjusted EBITDA margins of approximately 25%. The acquisition should be immediately accretive to adjusted EPS.

“Avalex’s portfolio of products and technologies is highly complementary to Mercury’s existing offering,” said Mark Aslett, President and CEO of Mercury. “With deep expertise in integrated displays, digital video recorders and communications management, their suite of innovative avionics solutions uniquely positions the company to meet and enable the growing demand for digitally converged solutions in the C4I and management markets. platform / mission. Similar to our previous acquisition of Physical Optics Corporation, Avalex is also experiencing accelerated growth due to its strong product offering and government supply chain stratification. Finally, we see strong alignment in our strategies and vision, as well as in our cultures, values ​​and commitment to innovation.

“Mercury is building an impressive platform and mission management company, and I think Avalex will be a great addition to their portfolio,” said Tad Ihns, CEO of Avalex. “Together, we will be able to deliver one of the largest and most advanced mission subsystem portfolios to a wider range of clients. We look forward to joining the Mercury team.

The acquisition is subject to customary closing conditions, including approval under the Hart-Scott-Rodino Antitrust Improvements Act of 1976. The transaction is currently expected to close in Mercury’s second quarter of fiscal 2022 ending on December 31, 2021.

Mercury envisions, creates and delivers innovative technology solutions specifically designed to meet the most pressing high-tech needs of its customers. For more information, visit mrcy.com or contact Mercury at (866) 627-6951 or [email protected]

Mercury Systems – Innovation that matters®Mercury Systems is a leading technology company serving the aerospace and defense industry, positioned at the intersection of high technology and defense. Headquartered in Andover, Mass., The company provides solutions that power a wide range of aerospace and defense programs, optimized for mission success in some of the most challenging and demanding environments. The company envisions, creates and delivers innovative technological solutions specifically designed to meet the most pressing high-tech needs of customers, including those specific to the defense community. To learn more, visit mrcy.com or follow us on Twitter.

Forward-looking statement on the Safe Harbor

This press release contains certain forward-looking statements, as that term is defined in the Private Securities Litigation Reform Act of 1995, including those relating to the acquisition described in this document and the business performance of fiscal year 2022 and the beyond and the Company’s plans for growth and improvement in profitability and cash flow. You can identify these statements by using the words “may”, “will”, “could”, “should”, “should”, “plans”, “expects”, “plans”, “continues”, “” project “,” intention “,” probable “,” forecast “,” probable “,” potential “and similar expressions. These forward-looking statements involve risks and uncertainties which could cause actual results to differ materially from those projected or anticipated. These risks and uncertainties include, but are not limited to, the continued funding of defense programs, the timing and amounts of such funding, general economic and business conditions, including unforeseen weakness in the defense markets. Society, the effects of epidemics and pandemics such as COVID, the effects of any US federal government shutdowns or protracted protracted resolutions, effects of continuing geopolitical unrest and regional conflicts, competition, changes in tec hnology and methods of marketing, delays in the completion of engineering and manufacturing programs, changes in customer ordering patterns, changes in the product line, continued success in technological advancements and implementation of technological innovations, changes in or in the interpretation by the United States government of federal rules and regulations relating to export or procurement controls, changes in, or in the interpretation or application of environmental rules and regulations, acceptance by product market, component shortage, production delay or unforeseen expenses due to performance quality issues with outsourced components, failure to fully realize the expected benefits of acquisitions, restructurings and value creation initiatives such as 1MPACT, or delays in achieving these benefits, difficulties in integrating ation of acquired businesses and realization of anticipated synergies, increases in interest rates, changes in industrial security and cybersecurity regulations and requirements, changes in tax rates or tax regulations, changes in interest rate swaps or other cash flow hedging arrangements, changes in generally accepted accounting principles, difficulties in retaining key employees and customers, unforeseen costs related to service and integration commitments of fixed price systems, and various other factors beyond our control. These risks and uncertainties also include additional risk factors as discussed in documents filed by the Company with the United States Securities and Exchange Commission, including its annual report on Form 10-K for the year ended 2 July 2021. The Company cautions readers not to place undue reliance on these forward-looking statements, which speak only as of the date of their publication. The Company assumes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made.

CONTACT Michael D. Ruppert, CFOMercury Systems Inc. 978-967-1990

Mercury Systems and Innovation That Matters are registered trademarks of Mercury Systems, Inc. Other product and company names mentioned may be trademarks and / or registered trademarks of their respective holders.

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Source: Mercury Systems Inc.


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