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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