Benzinga | Sep 27, 2021 01:31PM EDT

Mercury Systems To Acquire Avalex Technologies For Undisclosed Sum

* Mercury Systems Inc (NASDAQ: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.