SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported): December 14, 2017
Mercury Systems, Inc.
(Exact Name of Registrant as Specified in Charter)
(State or Other Jurisdiction
(Commission File Number)
50 Minuteman Road, Andover, Massachusetts
(Address of Principal Executive Offices)
Registrant’s telephone number, including area code: (978) 256-1300
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
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Emerging growth company ☐
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Item 7.01 Regulation FD Disclosure.
Mercury Systems, Inc. (Nasdaq:MRCY) (“Mercury” or the “Company”) confirmed today that it is in negotiations to acquire Themis Computer. Mercury noted that the parties are still in negotiations relating to the definitive terms and documentation for the proposed transaction, and no assurances can be made that the parties will reach agreement on the terms or enter into definitive agreements for the transaction, or that if they do sign definitive agreements, that the transaction will ultimately close.
Themis, a privately held company based in Fremont, California, is a leading designer, manufacturer and integrator of commercial, SWaP-optimized rugged servers, computers and storage systems for U.S. and international markets. The purchase price is expected to be $175 million in cash, subject to net working capital and net debt adjustments. If completed, the acquisition and related transaction expenses are expected to be funded through Mercury’s existing revolving credit facility. Themis is currently expected to generate revenues of approximately $57 million for its fiscal year ended December 31, 2017 with EBITDA margins of approximately 23%, although there can be no assurance that such results will be achieved. The acquisition, if completed, is expected to be immediately accretive to Mercury’s adjusted EPS.
Mercury is providing this disclosure because earlier today a draft press release regarding the proposed transaction was inadvertently posted on Mercury’s website for a short period. Except as provided herein, Mercury is not confirming any of the information in that draft press release.
This information is being furnished pursuant to Item 7.01 of this Report and shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section and will not be incorporated by reference into any registration statement filed by the Company under the Securities Act of 1933, as amended, unless specifically identified as being incorporated therein by reference. This Report will not be deemed an admission as to the materiality of any information in this Report that is being disclosed pursuant to Regulation FD.
This Report contains certain forward-looking statements, as that term is defined in the Private Securities Litigation Reform Act of 1995, including those relating to the potential acquisition described herein. You can identify these statements by the use of the words “may,” “will,” “could,” “should,” “would,” “plans,” “expects,” “anticipates,” “continue,” “estimate,” “project,” “intend,” “likely,” “forecast,” “probable,” “potential,” and similar expressions. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected or anticipated. Such risks and uncertainties include, but are not limited to, the risk that the parties do not enter definitive agreements for the acquisition, or that, if definitive agreements are entered into, that the acquisition will be completed, and risks related to continued funding of defense programs, the timing and amounts of such funding, general economic and business conditions, including unforeseen weakness in the Company’s markets, effects of continued geopolitical unrest and regional conflicts, competition, changes in technology and methods of marketing, delays in completing engineering and manufacturing programs, changes in customer order patterns, changes in product mix, continued success in technological advances and delivering technological innovations, changes in, or in the U.S. Government’s interpretation of, federal export control or procurement rules and regulations, market acceptance of the Company's products, shortages in components, production delays or unanticipated expenses due to performance quality issues with outsourced components, inability to fully realize the expected benefits from acquisitions and restructurings, or delays in realizing such benefits, challenges in integrating acquired businesses and achieving anticipated synergies, increases in interest rates, changes to cyber-security regulations and requirements, increases in tax rates, changes to generally accepted accounting principles, difficulties in retaining key employees and customers, unanticipated costs under fixed-price service and system integration engagements, and various other factors beyond our control. These risks and uncertainties also include such additional risk factors as are discussed in the Company's filings with the U.S. Securities and Exchange Commission, including its Annual Report on Form 10-K for the fiscal year ended June 30, 2017. The Company cautions readers not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. The Company undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made.
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
Dated: December 14, 2017
MERCURY SYSTEMS, INC.
/s/ Gerald M. Haines II
Gerald M. Haines II
Executive Vice President, Chief Financial Officer, and Treasurer