Mercury Computer Systems acquired LNX Corporation for an all-cash purchase price of $31.0 million. There is also an earn-out of up to $5.0 million payable upon the achievement of financial targets in calendar years 2011 and 2012. The acquisition was funded with cash on hand. It is expected to be neutral to modestly accretive within the first year. LNX designs and builds next generation RF receivers for Signals Intelligence, Communications Intelligence as well as Electronic Attack applications.
LNX will merge with Mercury’s Echotek Product Group (EPG) to form the new Microwave and Digital Solutions (MDS) group. The MDS group will focus on the development of RF and mixed-signal application-ready subsystems and components for EW – SIGINT applications.
A conference call at 8:30 a.m. EST on Thursday, January 13, 2011. The call will discuss the acquisition and Mercury’s preliminary second quarter fiscal 2011 financial results. Call (888) 515-2235 in the USA and Canada, and (719) 457-2639 in all other countries to listen to the conference call. The conference ID number is 9174774. A replay of the call will be available by telephone from approximately 11:30 a.m. EST on Thursday, January 13, 2011, through 11:30 a.m. EST on Tuesday, January 25, 2011. To access the replay, dial (888) 203-1112 in the USA and Canada, and (719) 457-0820 in all other countries. Enter access code 9174774.