Mercury Systems (Nasdaq: MRCY) has agreed to acquire Avalex Technologies for an undisclosed sum to expand its display offerings and mission processing capabilities and scale its avionics and mission systems business.
Andover, Massachusetts-based Mercury said Monday it aims to complete the acquisition in the second quarter of its 2022 fiscal year.
Avalex is headquartered in Gulf Breeze, Florida, and provides integrated communications management platforms, rugged displays, digital video cameras and other mission-critical avionics and warning systems.
Mark Aslett, president and CEO of Mercury and a 2021 Wash100 Award winner, said the two companies have complementary offerings and the combination would position itself to address a growing demand for digitally converged systems in the mission management and C4I markets.
âAvalex is also experiencing accelerated growth due to their strong product offerings and supply chain delayering by the Government,â added Aslett.
Mercury considers the transaction âan asset sale for tax purposesâ and intends to fund related transaction expenses using its existing cash on hand and revolving credit facility.
The company forecasts Avalex to earn $40 million in 2022 revenue.
