Mercury Systems Completes Previously Announced Acquisition Of Embedded Security, RF And Microwave, And Custom Microelectronics Businesses From Microsemi Corporation

Mercury Systems, Inc. recently announced the completion of its previously reported acquisition of the embedded security, RF and microwave, and custom microelectronics businesses from Microsemi Corporation.

Pursuant to the terms of the Stock Purchase Agreement applicable to the acquisition, Mercury acquired these businesses for a total purchase price of $300 million, subject to adjustment for certain working capital items. The acquisition and associated transaction expenses were funded with a combination of a new $200 million bank term loan A facility and Mercury cash on hand, which includes net proceeds of approximately $94 million from Mercury’s recent issuance of common stock in an underwritten public offering. In addition to the term loan, Mercury has also put in place a new $100 million revolving credit facility which remains undrawn.

“We’re pleased that this transaction was completed on schedule; the next step is executing a seamless integration,” said Mark Aslett, President and CEO of Mercury. “The acquisition is directly aligned with our strategy of expanding our capabilities, services and offerings along the sensor processing chain, and positions Mercury as the defense industry’s largest commercial embedded secure processing company.”

Rothschild served as Mercury’s financial advisor for the equity offering, Morgan, Lewis & Bockius LLP served as Mercury’s legal advisor for the acquisition and the equity offering, and Ropes & Gray LLP served as Mercury’s legal advisor for the debt financing.

For more information on the acquisition, visit www.mrcy.com/acquisition.

About Mercury Systems – Innovation That Matters

Mercury Systems is a leading commercial provider of secure processing subsystems designed and made in the USA. Optimized for customer and mission success, Mercury’s solutions power a wide variety of critical defense and intelligence programs. Headquartered in Chelmsford, Mass., Mercury is pioneering a next-generation defense electronics business model specifically designed to meet the industry’s current and emerging technology needs. For more information, visit www.mrcy.com.