Mercury Systems has announced that it has acquired Delta Microwave, LLC. Delta is a leading designer and manufacturer of high-value radio frequency (RF), microwave and millimeter wave subassemblies and components for military and space markets. Under the terms of the purchase agreement, Mercury acquired Delta for $40.5 million in cash, subject to net working capital and net debt adjustments, and is expected to be treated as an asset sale for tax purposes. The transaction presents opportunities for significant cost synergies in addition to the tax benefits associated with the transaction structure. For its fiscal year ended December 31, 2016, Delta had revenues of approximately $12.8 million and is on a rapid growth trajectory supported by a strong backlog of funded orders.Delta Microwave’s strengths in high-power, high-frequency active and passive microwave components and subassemblies – particularly in GaN solid-state power amplifiers – is driving this strong backlog and growth. With the acquisition Mercury has added new capabilities add scale which will enable them to expand their addressable market into satellite communications (SatCom), datalinks and space launch. These markets are well-aligned with Mercury’s existing market focus and will deepen their penetration into radar, electronic warfare (EW), and precision-guided munitions markets.