Mercury to acquire Physical Optics

Mercury Systems said today it has agreed to pay $310 million for Physical Optics, which designs and integrates avionics and mission subsystems for defense.

Torrance, CA-based Physical Optics, founded in 1985, is expected to produce sales of $120 million this year. It has about 350 employees, including more than 160 engineers, and holds more than 160 patents.

Physical Optics "is well-positioned on a wide variety of key airborne and naval defense platforms that are experiencing increased funding for electronics modernization to specifically address digital convergence and combat near-peer threats in line with the National Defense Strategy," Mercury said.

The deal is expected to close this month.