Mercury Systems To Acquire Avalex Technologies For Undisclosed Sum

  • Mercury Systems Inc MRCY has agreed to acquire Avalex Technologies Corporation in an undisclosed all-cash deal.
  • Avalex is a provider of mission-critical avionics, including rugged displays, integrated communications management systems, digital video recorders, and warning systems.
  • Mercury Systems expects the Avalex acquisition to be immediately accretive to adjusted EPS. Avalex is currently expected to generate ~$40 million in revenue for the twelve months ending December 31, 2022, with adjusted EBITDA margins of ~25%. 
  • Mercury plans to fund the deal through a combination of cash on hand and an existing revolving credit facility. It held cash and cash equivalents of $113.84 million as of July 2, 2021.
  • Mercury targets to close the transaction during 2Q22 ending December 31, 2021.
  • Price Action: MRCY shares are trading higher by 2.62% at $48.1 on the last check Monday.
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