Mercury Buys RF Module Maker Atlanta Micro; Mark Aslett Quoted

Mercury Systems (Nasdaq: MRCY) has purchased radio frequency modules manufacturer Atlanta Micro as part of efforts to expand its presence in the radar, electronic warfare and weapons markets.

Atlanta Micro is a Norcross, Georgia-based maker of high-performance RF modules, monolithic microwave integrated circuits and related components, Mercury Systems said Monday.

“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, president and CEO of Mercury Systems and a 2021 Wash100 Award winner.

Aslett added that Atlanta Micro’s MMIC capabilities will help expand Mercury’s investments in the microwave and RF domain and support the company’s goal of providing microelectronics capabilities for critical defense and aerospace applications.

Mercury said it expects the acquisition to be immediately accretive to adjusted earnings per share, contribute about $16 million in revenue for the 12 months ending Dec. 31, 2022, and to have a non-material financial impact on the company’s second fiscal quarter ending Dec. 31, 2021.

The all-cash purchase agreement is subject to net debt and net working capital adjustments. Mercury used its revolving credit facility to fund the transaction and related expenses.

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