Mercury Systems to Acquire Mission Computing Company Creative Electronic Systems
November 03 2016 - 9:12AM
Mercury Systems, Inc. (NASDAQ:MRCY) (www.mrcy.com), today announced
that it has signed a definitive agreement to acquire CES Creative
Electronic Systems, S.A. (“CES”). The acquisition is expected to
close during Mercury’s second fiscal quarter ending December 31,
2016. For the twelve month period ended September 30, 2016 CES had
revenue of approximately $23 million. The total purchase price for
the transaction is approximately $38 million, subject to net
working capital and net debt adjustments and will be funded with
cash on hand.
“We are very pleased to welcome CES to the Mercury family,” said
Mark Aslett, Mercury’s President and Chief Executive Officer. “The
addition of CES adds important and complementary capabilities in
mission computing, safety-critical avionics and platform management
that are in demand from our customers. These new capabilities will
also substantially expand Mercury’s addressable market into
commercial aerospace, defense platform management, C4I and mission
computing – markets that are aligned to Mercury’s existing market
focus. Like Mercury, CES has exceptional technology, solid
engineering talent and strong leadership, so we believe there is an
excellent fit strategically, culturally and operationally between
this business and Mercury,” Aslett concluded.
Based in Geneva, Switzerland, CES is a leading provider of
embedded solutions for military and aerospace mission-critical
computing applications. CES specializes in the design, development
and manufacture of safety-certifiable product and subsystems
solutions including: primary flight control units, flight test
computers, mission computers, command and control processors,
graphics and video processing and avionics-certified Ethernet and
IO. CES has decades of experience designing subsystems deployed in
applications certified up to the highest levels of design
assurance, DAL-A, for both DO-254 and DO-178. Their products and
solutions are used on platforms such as aerial refueling tankers
and multi-mission aircraft, as well as the several types of
unmanned platforms.
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 acquisition 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, increases
in interest rates, 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, 2016. 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
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