Mercury acquires The Athena Group and Syntonic Microwave

Andover, MA-based Mercury Systems, Inc. announced on April 18 the acquisitions of The Athena Group, Inc. (Athena) and Syntonic Microwave LLC (Syntonic). The all cash purchase price for both transactions was $46 million in total. Both transactions are subject to net working capital and net debt adjustments. The acquisitions were funded through Mercury’s existing revolving credit facility, and are not expected to have a material impact on Mercury’s financial results for the fourth quarter or full fiscal year 2019.

A privately-held company based in Gainesville, FL, The Athena Group is a leading provider of cryptographic and countermeasure IP vital to securing defense computing systems. A world leader in differential power analysis (DPA) technology, they offer a complete portfolio of provable DPA-resistant solutions. Athena’s sophisticated patented technologies meet mandated Department of Defense requirements and mitigate reverse engineering attempts on mission-critical systems. Embedded in millions of ASIC and next-generation FPGA devices, their solutions are designed to solve today’s toughest security obstacles, enabling key applications such as artificial intelligence, mobile communications and cloud computing.

Based in Campbell, CA, privately-held Syntonic Microwave is a leading provider of advanced synthesizers, wideband phase coherent tuners and microwave converters optimized for signals intelligence (SIGINT) and electronic intelligence (ELINT) applications demanding frequency coverage up to 40 GHz with 2 GHz instantaneous bandwidth. To address the rapidly evolving needs across the defense industry, the entire Syntonic product portfolio was designed for modularity, configurability and rapid prototyping in order to deliver unparalleled performance for next-generation electronic warfare (EW) applications.

“The acquisitions of Athena and Syntonic represent continued milestones for our market and content expansion strategy,” said Mark Aslett, Mercury’s president and CEO. “Mercury has a long history of collaboration with Athena in protecting critical Defense systems deployed across surface, subsurface, ground, and airborne platforms. Athena’s technologies expand our BuiltSECURE security IP portfolio and extend our leadership in secure embedded computing, positioning us well to capitalize on DoD program protection security requirements for domestic and foreign military sales.”

“Similarly, we believe Syntonic’s deep domain expertise in agile RF technology will expand and enhance our position as the preeminent supplier of high-performance, SWaP-optimized EW subsystems while enabling us to further penetrate the SIGINT and ELINT markets with additional Mercury content. The acquisition of Syntonic gives our defense Prime customers and government agencies access to highly differentiated sensor processing capability, thereby advancing our national interests through domination of the electromagnetic spectrum.”

“In summary, similar to previous acquisitions, the acquisitions of Athena and Syntonic continue to enable us to grow the size of our total addressable market and reinforce our strategy of becoming the leading provider of secure and safety-critical processing subsystems for aerospace and defense applications. We are very pleased to welcome the Athena and Syntonic teams to the Mercury family,” Aslett concluded.

Source: Mercury