Mercury Computer Systems Inc. (MRCY) entered into a definitive agreement to acquire KOR Electronics Inc. (KOR) and its wholly owned subsidiary, Paragon Dynamics Inc. or PDI. Pursuant to the merger deal, KOR would become a wholly-owned unit of Mercury for an all-cash price of $70 million.
The transaction would be funded with cash on hand, and is expected to be immediately accretive to earnings after excluding the effects of non-cash amortization of intangible assets related to the acquisition. The transaction may close within Mercury's fiscal 2012 second quarter ending December 31, 2011.
KOR designs and develops digital radio frequency memory units for a variety of modern Electronic Warfare applications, as well as radar environment simulation and test systems for defense applications. Paragon Dynamics, based in Aurora, Colorado, provides sophisticated analytic services and customized multi-INT data fusion and exploitation solutions for the Intelligence Community.
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