Additional Step in Building Mission Management Platform
Mercury Systems, Inc., announced on 27 September it has signed a definitive agreement to acquire Avalex Technologies Corporation, a Gulf Breeze, FL-based developer of mission-critical avionics.
The all-cash acquisition is expected to be funded through a combination of cash on hand and Mercury’s existing revolving credit facility. Subject to customary closing conditions, the transaction is currently expected to close during Mercury’s fiscal 2022 second quarter, ending 31 December. Avalex is currently expected to generate approximately $40 million (€34.2 million) in revenue for the year ending 31 December, 2022, with adjusted EBITDA margins of approximately 25%. The acquisition is expected to be immediately accretive to adjusted EPS.
“Avalex’s product and technology portfolio is highly complementary to Mercury’s existing offering,” stated Mark Aslett, Mercury’s President and CEO. “With deep expertise in integrated displays, digital video recorders, and communications management, their suite of innovative avionics solutions uniquely position the company to address and enable the growing demand for digitally converged solutions in the C4I and platform/mission management markets. Like our previous acquisition of Physical Optics Corporation, Avalex is also experiencing accelerated growth due to their strong product offerings and supply chain delayering by the government. Finally, we see strong alignment in our strategies and vision, as well as our cultures, values, and commitment to innovation.”
“Mercury is building an impressive business in the platform and mission management domain, and I believe Avalex will be an excellent complement to their portfolio,” added Tad Ihns, Avalex’ CEO. “Together we will be able to deliver one of the widest and most advanced portfolios of mission subsystems to a broader set of customers.”