Mercury Systems (Nasdaq: MRCY) has agreed to purchase Themis Computer for approximately $180 million in cash in a move to expand its presence in the command, control, communications, computers and intelligence market.
Andover, Massachusetts-based Mercury said Thursday it expects to complete the transaction in the third quarter of its fiscal 2018 ending March 31, subject to approval under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 and other customary closing conditions.
Themis is a Fremont, California-based manufacturer and integrator of computers, rugged servers and storage systems for U.S. and overseas defense initiatives.
Mark Aslett, president and CEO of Mercury, said in a statement the company will leverage Themis™ rugged servers to expand its offerings for the U.S. Army and the U.S. Navy as well as meet clients™ computer security requirements.
Aslett added the company views Themis as a strategic platform to deliver new offerings, broaden its C4I footprint and pursue future acquisitions.
Mercury noted it plans to use its revolving credit facility to fund the deal and related transaction expenses.
The all-cash acquisition is subject to net debt and working capital adjustments and Mercury expects the deal to be accretive to adjusted earnings per share.
Themis expects to record approximately $57 million in fiscal 2017 revenue and 23 percent in adjusted earnings before interest, taxes, depreciation and amortization margins.
The deal came five months after Mercury acquired Richland Technologies as part of efforts to grow processing subsystems offerings for aerospace and defense clients.
