Mercury Systems, Inc., (NASDAQ: MRCY, www.mrcy.com), a leader in
trusted, secure mission-critical technologies for aerospace and
defense, today announced that it has acquired Atlanta Micro, Inc.
(Atlanta Micro). Based in Norcross, Ga., Atlanta Micro is a leading
designer and manufacturer of high-performance RF modules and
components, including advanced monolithic microwave integrated
circuits (MMICs) which are critical for high-speed data acquisition
applications including electronic warfare, radar and weapons.
Under the terms of the purchase agreement, Mercury acquired
Atlanta Micro for all cash, subject to net working capital and net
debt adjustments. The acquisition and associated transaction
expenses were funded through Mercury’s existing revolving credit
facility. The acquisition is expected to have a non-material
financial impact in Mercury’s second fiscal quarter ending December
31, 2021. Atlanta Micro is expected to contribute approximately
$16mm in revenue for the twelve months ending December 31, 2022,
with adjusted EBITDA margins above 30%. The acquisition is expected
to be immediately accretive to adjusted EPS.
“The acquisition of Atlanta Micro, our fourth transaction in 12
months and 15th since our fiscal 2014, continues our strategy of
supplementing organic growth with disciplined M&A and full
integration,” said Mark Aslett, Mercury’s president and chief
executive officer. “The acquisition directly supports our stated
goal to provide next-generation trusted microelectronics
capabilities for critical aerospace and defense applications.
Atlanta Micro’s state-of-the-art MMIC capabilities expand our prior
investments in the RF and microwave domain, enabling us to both
provide best-in-class solutions for our customers and to address
new markets through our combined expertise. We see strong alignment
in our strategies and vision, as well as our cultures, values, and
commitment to innovation. We are very pleased to welcome the
Atlanta Micro team to Mercury,” Aslett concluded.
“We are very excited to join the Mercury Systems team" said Clay
Couey, chief executive officer and founder, Atlanta Micro.
"Mercury’s position at the intersection of high-tech and defense
enables us to better support our existing customers while
continuing to introduce new and innovative products. Further, there
is an excellent fit strategically and culturally between the two
businesses with a common focus on innovation that matters."
Mercury envisions, creates and delivers innovative technology
solutions purpose-built to meet its customers’ most pressing
high-tech needs. For more information on Mercury’s acquisitions and
M&A strategy, visit mrcy.com/company/mergers-and-acquisitions
or contact Mercury at (866) 627-6951 or info@mrcy.com.
Mercury Systems – Innovation That Matters®
Mercury Systems is a global commercial technology company serving
the aerospace and defense industry. Headquartered in Andover,
Mass., the company delivers trusted, secure open architecture
processing solutions powering a broad range of mission-critical
applications in the most challenging and demanding environments.
Inspired by its purpose of delivering Innovation that Matters, By
and For People Who Matter, Mercury helps make the world a safer,
more secure place for all. To learn more, visit mrcy.com, or follow
us on Twitter.
Forward-Looking Safe Harbor Statement
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
herein and to fiscal 2022 business performance and beyond
and the Company’s plans for growth and improvement in profitability
and cash flow. You can identify these statements by the use
of the words “may,” “will,” “could,” “should,” “would,”
“plans,” “expects,” “anticipates,” “continue,” “estimate,”
“project,” “intend,” “likely,” “forecast,” “probable,” “potential,”
and similar expressions. These forward-looking statements involve
risks and uncertainties that could cause actual results to differ
materially from those projected or anticipated. Such risks and
uncertainties include, but are not limited to, continued funding of
defense programs, the timing and amounts of such funding, general
economic and business conditions, including unforeseen weakness in
the Company’s markets, effects of epidemics and pandemics such as
COVID, effects of any U.S. federal government shutdown or extended
continuing resolution, effects of continued geopolitical unrest and
regional conflicts, competition, changes in technology and methods
of marketing, delays in completing engineering and manufacturing
programs, changes in customer order patterns, changes in product
mix, continued success in technological advances and delivering
technological innovations, changes in, or in the U.S. Government’s
interpretation of, federal export control or procurement rules and
regulations, changes in, or in the interpretation or enforcement of
environmental rules and regulations, market acceptance of the
Company’s products, shortages in components, production delays or
unanticipated expenses due to performance quality issues with
outsourced components, inability to fully realize the expected
benefits from acquisitions, restructurings and value creation
initiatives such as 1MPACT, or delays in realizing such benefits,
challenges in integrating acquired businesses and achieving
anticipated synergies, increases in interest rates, changes to
industrial security and cybersecurity regulations and requirements,
changes in tax rates or tax regulations, changes to interest rate
swaps or other cash flow hedging arrangements, changes to generally
accepted accounting principles, difficulties in retaining key
employees and customers, unanticipated costs under fixed-price
service and system integration engagements, and various other
factors beyond our control. These risks and uncertainties also
include such additional risk factors as are discussed in the
Company’s filings with the U.S. Securities and Exchange Commission,
including its Annual Report on Form 10-K for the fiscal year ended
July 2, 2021. The Company cautions readers not to place undue
reliance upon any such forward-looking statements, which speak only
as of the date made. The Company undertakes no obligation to update
any forward-looking statement to reflect events or circumstances
after the date on which such statement is made.
CONTACTMichael 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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