- Expands the scale and breadth of the company’s RFSoC, recorder and software-defined radio capabilities
- Deepens market penetration in major radar and electronic warfare / SIGINT markets
- Complementary products accelerate growth by low-risk content expansion
- The transaction is expected to be immediately credible to the adjusted EPS
ANDOVER, MA, May 27, 2021 (GLOBE NEWSWIRE) – Mercury Systems, Inc., (NASDAQ: MRCY, www.mrcy.com), a leader in reliable, secure mission-critical space and defense technologies, announced today that it has acquired Pentek Technologies, LLC and Pentek Systems, Inc. (together with Pentek). Based in Upper Saddle River, NJ, Pentek is a leading designer and manufacturer of robust, high-performance, commercially available (COTS) software-defined radio and data collection boards, recording systems and subsystems for high-end commercial and defense applications.
Under the terms of the purchase agreement, Mercury acquired Pentek for a purchase price of $ 65.0 million, subject to an adjustment to net working capital and net debt. Part of the acquisition is expected to be treated as a sale of an asset for tax purposes. Acquisition costs and related transactions were financed through a combination of cash and Mercury’s existing revolving credit facility. For Mercury’s fiscal year, ending July 1, 2022, Pentek is expected to generate revenue of about $ 20 million with profit margins in line with Mercury’s. The acquisition is expected to take effect immediately for the adjusted EPS.
“The acquisition of Pentek is a great fit for our market and a low-risk content expansion strategy,” said Mark Aslet, president and CEO of Mercury. “Their capabilities add scale and breadth to the existing portfolio of mixed-signal products and deepen our penetration of our core radars, e-warfare (EW) and intelligence market signals. Like our previous acquisitions in the radio frequency and microwave domains, the acquisition of Pentek not only provides important new opportunities for our customers; this also allows us to increase the size of our common address market. We are very pleased to welcome the Pentek team to Mercury, ”concluded Aslet.
“I am excited to be able to bring new capabilities to Mercury’s impressive combination of pre-integrated subsystems to support multiple aerospace and defense programs and platforms,” said Roger Hosking, Pentek’s vice president. provide a diverse portfolio of building blocks, allowing low-risk expansion of content at the module and subsystem level. In addition, there is an excellent strategic and cultural fit between the two businesses with a common focus on innovation that matters. “
Mercury provides, 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 info@mrcy.com.
Mercury Systems – Innovation that matters®
Mercury Systems is a global trading technology company serving the space and defense industries. Headquartered in Andover, Massachusetts, the company offers reliable, secure open architecture processing solutions that power a wide range of mission-critical applications in the most challenging and demanding environments. Inspired by its goal of delivering innovation that matters to and from people that matter, Mercury helps make the world a safer and more secure place for all. To learn more, visit mrcy.comor follow us Twitter.
Safe harbor statement with perspective
This press release contains some forward-looking statements, as this term is defined in the Private Securities Litigation Reform Act 1995, including those related to the acquisition described here, as well as the financial results of the financial year 2021. and then the company ‘s plans for growth and improvement in profitability and cash flow. You can identify these statements with the words “can”, “will”, “could”, “should”, “would”, “plans”, “expects”, “expects”, “continue”, “predicts, “Project”, “intend”, “probable”, “forecast”, “probable”, “potential” and similar expressions. These forward-looking statements include risks and uncertainties that may give rise to material differences in actual results from those projected or expected. Such risks and uncertainties include, but are not limited to, continued funding for defense programs, the timing and amount 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 suspension of the US federal government or prolonged resolution, consequences of ongoing geopolitical unrest and regional conflicts, competition, changes in marketing technologies and methods, delays in the implementation of engineering and production programs, changes in customer order patterns, changes in product mix, continued success in technological advancement and the provision of technological innovation, changes in or in the US government’s interpretation of federal export control and export regulations, market acceptance of the company’s products, shortage of components, production delays or unexpected costs due to p performance problems with outsourced components, ina to fully realize the expected benefits of acquisitions and restructuring or delays in realizing such benefits, challenges in integrating acquired business and achieving expected synergies, raising interest rates, changes in regulations and requirements for industrial security and cybersecurity, 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, unexpected costs in fixed service engagements cost and system integration and various other factors beyond our control. These risks and uncertainties include such additional risk factors that are discussed in the Company’s dossiers to the US Securities and Exchange Commission, including its annual Form 10-K report for the fiscal year ended July 3, 2020. The Company warns readers should not misread any such forward-looking statements that speak only to the date made. The Company undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date on which such a statement is made.
CONTACT
Michael D. Rupert, CFO
Mercury Systems Inc.
978-967-1990
Mercury Systems and Innovation That Matters are registered trademarks of Mercury Systems, Inc. Other product and company names mentioned herein may be trademarks and / or registered trademarks of their respective holders.
