4th Quarter and Full Fiscal Year 2019 Financial Results & American Panel Corporation Acquisition Overview
Agreement to acquire American Panel Corporation (APC)
• Leader in rugged flat panel display solutions for aerospace and defense
Complements existing safety-certifiable avionics processing capabilities
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Deployed on wide range of next-generation platforms, including Apache attack
helicopter, M1A2 Abrams battle tank, F-35, F-15, F-16 and F-18 fighter jets
$100M purchase price"); funded with cash on hand
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- ~11x gross purchase multiple of estimated next twelve months adj. EBITDAⓇ
~10x purchase multiple net of expected tax benefits (3)
Combined with CES, RTL, GECO, will create ~$100M avionics systems business (4)
• Will enable Mercury to compete for larger avionics opportunities, play larger
role in military digital convergence and supply chain delayering
Acquisition expected to close in Q1 FY20
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Notes:
(1) Subject to net working capital and net debt adjustments.
(2) Adjusted for estimated costs required to operate the business as a standalone entity.
(3) Pending acquisition of APC is expected to be treated as an asset purchase for tax purposes, resulting in ~$12M in net present value of tax benefits.
(4) Pro forma for a full year of ownership of APC and GECO.
© 2019 Mercury Systems, Inc.
(2)
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