Mercury Systems to Acquire Three Businesses from Microsemi

Mercury Systems Inc. announced that it has entered into an agreement to acquire the embedded security, RF and microwave, and custom microelectronics businesses of Microsemi Corporation.  The businesses primarily serve the defense electronics markets and generated a combined revenue of approximately $100 million and adjusted EBITDA of approximately $28 million for the twelve-month period ending September 27, 2015.  

Mark Aslett, President and CEO of Mercury states: “The transaction adds secure solid-state storage to our array of industry-leading, pre-integrated processing subsystems capabilities. It nearly doubles the size of our RF and Microwave business, adding new capabilities, scale and synergies. In addition, it provides us with new capabilities in embedded security and mixed signal system-on-chip processing. All these capabilities are highly aligned with our business from a strategic perspective, so there couldn’t be a better fit with our existing strategy and solutions portfolio.”

The purchase price is $300 million, however, there is approximately $10 million of transactional tax benefits which lowers the effective purchase price.  The deal is expected to close during Mercury's fourth quarter ending June 30, 2016.