Mercury boosts expertise in embedded computing security with acquisition of Microsemi business
CHELMSFORD, Mass., 6 April 2016. Executives of Mercury Systems Inc. in Chelmsford, Mass., are boosting their company's expertise in embedded computing security and microelectronics with their acquisition of the Microsemi Corp. embedded security, RF and Microwave, and custom microelectronics businesses for $300 million.
In addition to cyber security, the transaction adds secure solid-state storage Mercury's capabilities, and nearly doubles the size Mercury's existing RF and microwave business, says Mercury President and CEO Mark Aslett. The acquisition also provides Mercury with capabilities in embedded security and mixed signal system-on-chip processing.
The businesses are primarily focused on the defense electronics market and employ a total of about 275 people based at facilities in Phoenix; Camarillo and San Jose, Calif.; and West Lafayette, Ind.
For the year ended 27 Sept. 2015 these businesses had combined revenues of about $100 million and pro forma standalone adjusted EBITDA of about $28 million, Mercury officials say.
Mercury will pay for the acquisition with a combination of committed financing for a new $265 million bank term loan A and about $50 million of Mercury's cash on hand.
The acquisition is subject to customary closing conditions, and should close by this June. For more information contact Mercury online at www.mrcy.com.