Mercury Systems Completes Previously Announced Acquisition of Embedded Security, RF and Microwave, and Custom Microelectronic...
May 02 2016 - 09:25AM
Mercury Systems, Inc. (NASDAQ:MRCY) (www.mrcy.com), today announced
the completion of its previously reported acquisition of the
embedded security, RF and microwave, and custom microelectronics
businesses from Microsemi Corporation.
Pursuant to the terms of the Stock Purchase
Agreement applicable to the acquisition, Mercury acquired these
businesses for a total purchase price of $300 million, subject to
adjustment for certain working capital items. The acquisition and
associated transaction expenses were funded with a combination of a
new $200 million bank term loan A facility and Mercury cash on
hand, which includes net proceeds of approximately $94 million from
Mercury’s recent issuance of common stock in an underwritten public
offering. In addition to the term loan, Mercury has also put in
place a new $100 million revolving credit facility which remains
undrawn.
“We’re pleased that this transaction was completed
on schedule; the next step is executing a seamless integration,”
said Mark Aslett, President and CEO of Mercury. “The acquisition is
directly aligned with our strategy of expanding our capabilities,
services and offerings along the sensor processing chain, and
positions Mercury as the defense industry’s largest commercial
embedded secure processing company.”
Rothschild served as Mercury’s financial advisor
for the equity offering, Morgan, Lewis & Bockius LLP served as
Mercury’s legal advisor for the acquisition and the equity
offering, and Ropes & Gray LLP served as Mercury’s legal
advisor for the debt financing.
For more information on the acquisition, visit
www.mrcy.com/acquisition.
Mercury Systems – Innovation That Matters™
Mercury Systems (NASDAQ:MRCY) is a leading commercial provider
of secure processing subsystems designed and made in the USA.
Optimized for customer and mission success, Mercury’s solutions
power a wide variety of critical defense and intelligence programs.
Headquartered in Chelmsford, Mass., Mercury is pioneering a
next-generation defense electronics business model specifically
designed to meet the industry’s current and emerging technology
needs. To learn more, visit www.mrcy.com.
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 transactions described
herein. 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 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, 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 and
restructurings, or delays in realizing such benefits, challenges in
integrating acquired businesses and achieving anticipated
synergies, changes to export regulations, increases in tax rates,
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
June 30, 2015. 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.
Mercury Systems and Innovation That Matters are trademarks of
Mercury Systems, Inc. Other product and company names mentioned may
be trademarks and/or registered trademarks of their respective
holders.
Contact:
Gerry Haines, CFO
Mercury Systems, Inc.
+1 978-967-1990
Mercury Systems (NASDAQ:MRCY)
Historical Stock Chart
From Feb 2024 to Mar 2024
Mercury Systems (NASDAQ:MRCY)
Historical Stock Chart
From Mar 2023 to Mar 2024