Mercury Systems To Buy Themis Computer For $180 Mln In Cash - Quick Facts

(RTTNews) - Mercury Systems, Inc. (MRCY) said it has agreed to acquire Themis Computer for an all cash purchase price of $180 million, subject to net working capital and net debt adjustments. The company noted that the acquisition will broaden its capabilities in rugged servers and tactical cloud computing solutions.

Fremont, California-based Themis is a designer, manufacturer and integrator of commercial, SWaP-optimized rugged servers, computers and storage systems for U.S. and international defense programs. The transaction is currently expected to close during Mercury's fiscal 2018 third quarter ending March 31, 2018.

Themis is currently expected to generate revenue of about $57 million for its fiscal year ending December 31, 2017 with adjusted EBITDA margins of approximately 23 percent.

"The acquisition of Themis is consistent with our strategy and will expand our position in the growing Command, Control, Communications, Computers and Intelligence (C4I) market. We view Themis as a platform for accelerating our growth organically and through future acquisitions," said Mark Aslett, Mercury's President and Chief Executive Officer.

Mercury Systems said it expects to fund the acquisition and associated transaction expenses through its existing revolving credit facility. The company also expects the acquisition to be immediately accretive to its adjusted earnings per share.