ANDOVER, Mass. – Two major high-performance embedded computing companies are joining forces with the announcement this morning that Mercury Systems in Andover, Mass., is acquiring Pentek Inc. in Upper Saddle River, N.J., for $65 million in cash.
Of the Pentek acquisition, Mercury CEO Mark Aslett says "their capabilities add scale and breadth to Mercury's existing mixed-signal product portfolio and deepen our penetration into our core radar, electronic warfare (EW), and signals intelligence markets."
Mercury acquired Pentek Technologies LLC and Pentek Systems Inc. subject to net working capital and net debt adjustments. For Mercury's fiscal year ending July 1, 2022, Pentek is expected to generate revenue of about $20 million.
Pentek specializes in ruggedized high-performance commercial off-the-shelf (COTS) software-defined radio and data acquisition boards, data recording systems, and subsystems for high-end military and commercial applications.
"There is an excellent fit strategically and culturally between the two businesses," says Rodger Hosking, vice president and co-founder of Pentek. "Our product-focused business model will provide a diverse portfolio of building blocks enabling low-risk content expansion at the module and subsystems levels."
Mercury specializes in trusted, secure, open-architecture embedded computing processing solutions for mission-critical applications that must operate in challenging environments.
Mercury has been in acquisition mode for the past several years. The company's most recent acquisition was avionics, electronic warfare (EW), and trusted computing expert Physical Optics Corp. (POC) in Torrance, Calif., last December $310 million cash.
In 2018 Mercury acquired Germane Systems in Chantilly, Va., for $45 million in cash to gain access to a program that installs computer rugged servers aboard U.S. Navy submarines. Germane Systems had been involved in the U.S. Navy Acoustics-Rapid COTS Insertion (A-RCI) program for several years.
Germane had specialized in rugged computer servers, rugged computers, and rugged data storage for command, control, and information applications. Germane's computer hardware is designed for harsh environments in U.S. and international defense programs, as well as in industrial applications.
In December 2017 Mercury acquired rugged embedded computing specialist Themis Computer in Fremont, Calif., a company with a long legacy in naval shipboard computing, for $180 million cash. Before the Germane and Themis acquisitions, Mercury boosted its expertise in RF and microwave technologies for military and space applications with their acquisition in April 2017 of Delta Microwave Inc. in Oxnard, Calif., for $40.5 million in cash.
In 2016 Mercury enhanced its expertise in rugged mobile safety-critical mission computing for commercial and military aviation with its acquisition of CES Creative Electronic Systems S.A. for $39 million in cash.
In April 2016 Mercury acquired additional expertise in anti-tamper and trusted computing technologies by purchasing the Microsemi Corp. embedded security, RF and Microwave, and custom microelectronics businesses for $300 million.
In December 2015 Mercury heightened its profile in secure computing and military and commercial engineering design services with their acquisition of Lewis Innovative Technologies Inc. (LIT) in Decatur, Ala. Terms of that transaction were not released.