Mercury Systems opts against selling company

Atlanta Micro, which Mercury Systems acquired in 2021, makes the AM9017 Miniature Tuner that can help detect a hostile electronic warfare system. (Mercury Systems' Atlanta Micro)

Mercury Systems, which announced in January that it was launching a review of “strategic alternatives”, including a potential sale of the US-based defence electronics supplier, revealed on 23 June that it has decided against selling the publicly traded company.

Mercury said the review included talks with more than 40 potential bidders but that the proposals it received did not reflect the company's “intrinsic value”. As a result, Mercury's board has decided to end the sale process and focus on other options, including “enhanced execution” under “refreshed leadership”.

The refreshed leadership will include a new chief executive. Mercury president and CEO Mark Aslett is leaving after more than 15 years at the helm. He had been under pressure to improve the performance of the company, which reported a net loss of USD20.1 million in the first nine months of fiscal year (FY) 2023 despite rising revenue. Bill Ballhaus, a member of Mercury's board of directors and a former defence industry executive, will serve as interim president and CEO until Aslett's permanent successor is named.

In addition to replacing Aslett, Mercury said it intends to announce the appointment of a new chief financial officer (CFO) “in the coming weeks”. Michael Ruppert left the position in February to become the CFO of US government contractor ManTech International. Mercury also said that board chairman William O'Brien is retiring and that it is adding two new members to the board.