Headwaters MB advised Creative Electronic Systems, S.A. ("CES"), a leading provider of embedded solutions for military and aerospace mission-critical computing applications, on its sale to Mercury Systems (NASDAQ: MRCY). The acquisition is expected to close during Mercury’s second fiscal quarter ending December 31, 2016. The total purchase price for the transaction is approximately $38 million, subject to net working capital and net debt adjustments.
Based in Geneva, Switzerland, CES specializes in the design, development and manufacture of safety- qualified product and subsystems solutions for commercial aerospace and military C4ISR missions. Their products are used in primary flight control units, flight test computers, mission computers, command and control processors, graphics and video processing, and avionics- certified Ethernet and IO. CES has decades of experience designing subsystems deployed in applications certified up to the highest levels of design assurance, DAL-A, for both DO-254 and DO-178. Their products and solutions are on platforms such as military aerial refueling tankers and multi-mission aircraft, as well as unmanned aerial vehicles.
Xavier Paternot, Managing Partner of Vinci Capital, noted, “Headwaters played a critical role in this deal, by providing deep insight in the aerospace and defense industry as well as by facilitating the discussions from the very first meeting until the closing.”
"Helping our international client find the right U.S. strategic partner to expand its market was the driving imperative for our team. Cross-border transactions are one of the core strengths of Headwaters, as well as deep industry knowledge of players,” noted Tess Oxenstierna, Managing Director for Aerospace, Defense, Government and Security. “CES’s roots lie in supplying single board computers to CERN for high energy physics instrumentation – they have historically and continue to design products for the most stringent conditions, supporting mission and safety critical functions for our warfighters.”
“This transaction is a smart move for Mercury Systems as it continues to build its technology arsenal,” adds Jerry Sturgill, Managing Director at Headwaters. “With the acquisition of CES, Mercury now has a powerful engineering, manufacturing and sales hub in the heart of the European market."
About CES Creative Electronic Systems, S.A.
Based in Geneva, Switzerland, CES designs and manufactures rugged embedded computers engineered to meet the most demanding performance needs for optimal Size, Weight and Power (SWaP) considerations. Our Commercial Off-The-Shelf (COTS) products are made to withstand the extremes of temperature, shock and vibration associated with deployment in Aerospace & Defense as well as Rugged Industrial markets. The ability to deliver safety-certifiable products at the board or system level makes CES a unique partner for your next program whether supporting mission-critical or safety-critical functions. For more information, visit www.ces-swap.com.
About Mercury Systems
Mercury Systems (NASDAQ:MRCY) is a leading commercial provider of secure processing subsystems designed and made in the USA. Optimized for customer and mission success, Mercury’s solutions power a wide variety of critical defense and intelligence programs. Headquartered in Chelmsford, Mass., Mercury is pioneering a next-generation defense electronics business model specifically designed to meet the industry’s current and emerging technology needs. For more information, visit www.mrcy.com.