Mercury Computer Systems Inc. (Nasdaq: MRCY) has bookended 2011 with acquisitions, announcing it is acquiring California defense and intelligence companyKOR Electronics Inc. for $70 million in cash.
KOR will become a subsidiary of Mercury, as will KOR’s own subsidiary, Paragon Dynamics Inc. of Colorado. The sale is expected to close by the end of this calendar year, officials said in a release. KOR is most known for making digital radio frequency memory (DRFM) units for electronic warfare uses, as well as radar environment simulation and test systems for defense uses. Paragon provides analytic and data services for the intelligence community.
In January, Chelmsford, Mass.-based Mercury acquired LNX Corp. of Salem, N.H., a manufacturer of digital and radio frequency components for $31 million in cash. Along with the $31 million, Mercury said at the time it had also committed to pay up to $5 million upon the achievement of financial targets in calendar years 2011 and 2012. LNX’s operations were combined with Mercury’s Echotek Product Group, to form the new Microwave and Digital Solutions group.
The next month, publicly traded Mercury priced a previously announced Mercury Computer Systems Inc. (Nasdaq: MRCY) has bookended 2011 with acquisitions, today announcing it is acquiring California defense and intelligence company KOR Electronics Inc. for $70 million in cash.
KOR will become a subsidiary of Mercury, as will KOR’s own subsidiary, Paragon Dynamics Inc.of Colorado. The sale is expected to close by the end of this calendar year, officials said in a release. KOR is most known for making digital radio frequency memory (DRFM) units for electronic warfare uses, as well as radar environment simulation and test systems for defense uses. Paragon provides analytic and data services for the intelligence community.
In January, Chelmsford, Mass.-based Mercury acquired LNX Corp. of Salem, N.H., a manufacturer of digital and radio frequency components for $31 million in cash. Along with the $31 million, Mercury said at the time it had also committed to pay up to $5 million upon the achievement of financial targets in calendar years 2011 and 2012. LNX’s operations were combined with Mercury’s Echotek Product Group, to form the new Microwave and Digital Solutions group.
The next month, publicly traded Mercury priced a previously announced common stock offering, setting the mark at $17.75 per share for 4.85 million shares, for a total value of about $86 million. At the time, Mercury said it planned to use the proceeds general corporate purposes.