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Mercury Systems To Buy Physical Optics Corp. - Quick Facts

Mercury Systems, Inc. (MRCY) announced a definitive agreement to acquire Torrance, California-based Physical Optics Corp. for an all-cash purchase price of $310 million, subject to net working capital and net debt adjustments. Mercury Systems expects this acquisition to be immediately accretive to adjusted earnings per share.

Physical Optics, founded in 1985, is a designer, developer, and integrator of advanced technologies primarily focused on avionics & mission subsystems for defense applications. Physical Optics employs approximately 350 people, including more than 160 highly skilled engineers, and holds over 160 patents worldwide, covering 60 technologies.

Mercury expects this transaction to close during fiscal 2021 second quarter ending January 1, 2021 and to fund this acquisition and associated transaction expenses through a combination of cash on hand and existing revolving credit facility.

Physical Optics is currently expected to generate revenue of over $120 million for its fiscal year ending December 31, 2020. The acquisition represents a multiple of approximately 13x next twelve months EBITDA.

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