Mercury Systems [MRCY] on Monday said it has acquired Atlanta Micro, a small designer and manufacturer of high-performance radio frequency (RF) modules and components, in a deal that deepens its footprint in the electronic warfare, radar and weapons markets.
Mercury said it paid cash for Atlanta Micro, which is expected to generate about $16 million in sales in 2022 and deliver adjusted operating margins above 30 percent. Mercury said the acquisition is expected to be immediately accretive to its adjusted earnings per share.
Atlanta Micro is based in Norcross, Ga., near Atlanta, and has about 35 employees. The company’s capabilities include advanced monolithic microwave integrated circuits (MMICs), which are key for high-speed data acquisition applications such as electronic warfare, radar and weapons. Atlanta Micro’s products include amplifiers, attenuators, filters, splitters, couplers, switches and tuners.
“The acquisition directly supports our stated goal to provide next-generation trusted microelectronics capabilities for critical aerospace and defense applications,” Mark Aslett, Mercury’s president and CEO, said in a statement. “Atlanta Micro’s state-of-the-art MMIC capabilities expand our prior investments in the RF and microwave domain, enabling us to both provide best-in-class solutions for our customers and to address new markets through our combined expertise.”
The acquisition is the fourth by Mercury in the past 12 months. Earlier in November, Mercury acquired Avalex Technologies, a provider of avionics, including rugged displays, integrated communications management systems, digital video recorders and warning systems. Avalex is expected to contribute about $40 million in sales in 2022 and generate adjusted operating margins of about 40 percent.