Mercury Systems acquires Pentek | 2021-05-27

Mercury Systems, Inc. announced that it has acquired Pentek Technologies, LLC and Pentek Systems, Inc. (collectively, “Pentek”). Based in Upper Saddle River, N.J., Pentek is a leading designer and manufacturer of ruggedized, high-performance, commercial off-the-shelf (“COTS”) software-defined radio and data acquisition boards, recording systems and subsystems for high-end commercial and defense applications.

Under the terms of the purchase agreement, Mercury acquired Pentek for an all-cash purchase price of $65.0 million, subject to net working capital and net debt adjustments. A portion of the acquisition is expected to be treated as an asset sale for tax purposes. The acquisition and associated transaction expenses were funded through a combination of cash on hand and Mercury’s existing revolving credit facility. For Mercury’s fiscal year ending July 1, 2022, Pentek is expected to generate revenue of approximately $20 million with profit margins in line with Mercury’s. The acquisition is expected to be immediately accretive to adjusted EPS.

Source link