Mercury Systems, Inc. announced that it has acquired Atlanta Micro, Inc. (Atlanta Micro). Based in Norcross, Ga., Atlanta Micro is a leading designer and manufacturer of high-performance RF modules and components, including advanced monolithic microwave integrated circuits (MMICs) which are critical for high-speed data acquisition applications including electronic warfare, radar, and weapons.
Under the terms of the purchase agreement, Mercury acquired Atlanta Micro for all cash, subject to net working capital and net debt adjustments. The acquisition and associated transaction expenses were funded through Mercury’s existing revolving credit facility. The acquisition is expected to have a non-material financial impact in Mercury’s second fiscal quarter ending December 31, 2021. Atlanta Micro is expected to contribute approximately $16mm in revenue for the twelve months ending December 31, 2022, with adjusted EBITDA margins above 30%. The acquisition is expected to be immediately accretive to adjusted EPS.
“The acquisition of Atlanta Micro, our fourth transaction in 12 months and 15th since our fiscal 2014, continues our strategy of supplementing organic growth with disciplined M&A and full integration,” said Mark Aslett, Mercury’s president and chief executive officer. “The acquisition directly supports our stated goal to provide next-generation trusted microelectronics capabilities for critical aerospace and defense applications. Atlanta Micro’s state-of-the-art MMIC capabilities expand our prior investments in the RF and microwave domain, enabling us to both provide best-in-class solutions for our customers and to address new markets through our combined expertise. We see strong alignment in our strategies and vision, as well as our cultures, values, and commitment to innovation. We are very pleased to welcome the Atlanta Micro team to Mercury,” Aslett concluded.
“We are very excited to join the Mercury Systems team,” said Clay Couey, chief executive officer and founder, Atlanta Micro. “Mercury’s position at the intersection of high-tech and defense enables us to better support our existing customers while continuing to introduce new and innovative products. Further, there is an excellent fit strategically and culturally between the two businesses with a common focus on innovation that matters.”