Two acquisitions expand scale and breadth of
Company’s security and RF capabilitiesDeepen market penetration in
core embedded security and EW marketsOpen new growth opportunities
in C4ISR, DoD research laboratories and Intelligence Community
Mercury Systems, Inc. (NASDAQ: MRCY, www.mrcy.com) today announced
the acquisitions of The Athena Group, Inc. (Athena) and Syntonic
Microwave LLC (Syntonic). The all cash purchase price for both
transactions was $46 million in total. Both transactions are
subject to net working capital and net debt adjustments. The
acquisitions were funded through Mercury’s existing revolving
credit facility, and are not expected to have a material impact on
Mercury’s financial results for the fourth quarter or full fiscal
year 2019.
A privately-held company based in Gainesville, Fla., The Athena
Group is a leading provider of cryptographic and countermeasure IP
vital to securing defense computing systems. A world leader in
differential power analysis (DPA) technology, they offer a complete
portfolio of provable DPA-resistant solutions. Athena’s
sophisticated patented technologies meet mandated Department of
Defense requirements and mitigate reverse engineering attempts on
mission-critical systems. Embedded in millions of ASIC and
next-generation FPGA devices, their solutions are designed to solve
today’s toughest security obstacles, enabling key applications such
as artificial intelligence, mobile communications and cloud
computing.
Based in Campbell, Calif., privately-held Syntonic Microwave is
a leading provider of advanced synthesizers, wideband phase
coherent tuners and microwave converters optimized for signals
intelligence (SIGINT) and electronic intelligence (ELINT)
applications demanding frequency coverage up to 40 GHz with 2 GHz
instantaneous bandwidth. To address the rapidly evolving needs
across the defense industry, the entire Syntonic product portfolio
was designed for modularity, configurability and rapid prototyping
in order to deliver unparalleled performance for next-generation
electronic warfare (EW) applications.
“The acquisitions of Athena and Syntonic represent continued
milestones for our market and content expansion strategy,” said
Mark Aslett, Mercury’s President and Chief Executive Officer.
“Mercury has a long history of collaboration with Athena in
protecting critical Defense systems deployed across surface,
subsurface, ground, and airborne platforms. Athena’s technologies
expand our BuiltSECURE™ security IP portfolio and extend our
leadership in secure embedded computing, positioning us well to
capitalize on DoD program protection security requirements for
domestic and foreign military sales.”
“Similarly, we believe Syntonic’s deep domain expertise in agile
RF technology will expand and enhance our position as the
preeminent supplier of high-performance, SWaP-optimized EW
subsystems while enabling us to further penetrate the SIGINT and
ELINT markets with additional Mercury content. The acquisition of
Syntonic gives our defense Prime customers and government agencies
access to highly differentiated sensor processing capability,
thereby advancing our national interests through domination of the
electromagnetic spectrum.”
“In summary, similar to previous acquisitions, the acquisitions
of Athena and Syntonic continue to enable us to grow the size of
our total addressable market and reinforce our strategy of becoming
the leading provider of secure and safety-critical processing
subsystems for aerospace and defense applications. We are very
pleased to welcome the Athena and Syntonic teams to the Mercury
family,” Aslett concluded.
Additional information on the acquisitions will be provided on
Mercury’s fiscal 2019 third quarter results conference call,
scheduled for 5:00 p.m. EDT on Tuesday, April 30, 2019.
For more information, visit www.mrcy.com/acquisition or contact
Mercury at (866) 627-6951 or info@mrcy.com.
About The Athena Group
The Athena Group is leading provider of security, cryptography,
anti-tamper, and signal processing IP cores to many of the world’s
largest semiconductor companies, defense contractors, and OEMs, as
well as emerging providers. Embedded in millions of ASIC and FPGA
devices, Athena technologies enable high-value solutions where
security and performance are mission critical: defense and
aerospace, vehicle safety (V2V, V2X, and telematics), networking
and communications, satellites, cellular base stations, handsets,
the Internet of Things (IoT), and more.
About Syntonic Microwave
Syntonic Microwave is a leading provider of advanced microwave
frequency converters to the EW, ELINT and intelligence community
markets. The company specializes in wideband phase coherent tuners,
microwave converters, and synthesizers. The products are uniquely
designed to support multiple configurations and ease of
customization, providing customers with solutions tailored to their
needs.
Mercury Systems – Innovation That Matters®
Mercury Systems (NASDAQ:MRCY) is a leading commercial provider
of secure sensor and safety-critical processing subsystems.
Optimized for customer and mission success, Mercury’s solutions
power a wide variety of critical defense and intelligence programs.
Headquartered in Andover, 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 and follow them on
Twitter.
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 acquisitions described
herein and to fiscal 2019 business performance and beyond and the
Company’s plans for growth and improvement in profitability and
cash flow. 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 any U.S. Federal government
shutdown or extended continuing resolution, 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 cyber-security regulations and
requirements, changes in tax rates or tax regulations, 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, 2018. 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.
Contact:Michael Ruppert, CFOMercury Systems, Inc.+1
978-967-1990
Mercury Systems and Innovation That Matters are registered
trademarks, and BuiltSECURE is a trademark of Mercury Systems, Inc.
Other product and company names mentioned may be trademarks and/or
registered trademarks of their respective holders.
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