Mercury Systems announced on March 13 2026 that it had closed a transaction with SolderMask, Inc. The deal closed on March 3 2026 and brings SolderMask’s assets, intellectual property, and five‑person workforce into Mercury’s operations.
The acquisition expands Mercury’s dry‑film solder‑mask capabilities, a critical step in the manufacturing of high‑rate defense components. SolderMask has supported more than 20 Mercury programs, including the U.S. Army’s Lower Tier Air and Missile Defense Sensor program and several Common Processing Architecture initiatives. By bringing this capability in‑house, Mercury reduces supplier dependency, shortens lead times, and gains tighter control over quality for sensitive hardware.
Mercury will continue SolderMask’s work from its Huntington Beach, California facility and will add a parallel manufacturing line at its Phoenix plant. The new line is intended to boost throughput for high‑rate production of defense components, supporting Mercury’s shift toward high‑margin production of its Common Processing Architecture platform.
Bill Ballhaus, Chairman and CEO, said, "Mercury is entering a critical phase where many programs are ramping into higher‑rate production, and we are taking a number of proactive actions to increase capacity and efficiency in our operations." He added, "The acquisition of SolderMask will further differentiate our processing capabilities and allow us to accelerate deliveries to our customers and the warfighter."
Mercury’s Q2 FY2026 results, released earlier in February, showed revenue of $233 million, up 4.5 % from $223 million in the prior year, and adjusted EBITDA of $30 million, up 300 basis points to a 12.9 % margin. Free cash flow reached $46 million, and bookings hit $288 million, giving a backlog of $1.5 billion. Ballhaus noted, "We delivered second quarter fiscal 2026 results that were ahead of our expectations, with solid year‑over‑year growth in backlog, revenue, and adjusted EBITDA, and robust free cash flow."
The acquisition positions Mercury to accelerate deliveries to key defense customers, including the Army’s LTAMDS program, and supports the company’s broader strategy of scaling production while maintaining quality standards. The move also strengthens Mercury’s Common Processing Architecture platform, a high‑margin product line expected to drive future growth as defense programs transition to higher‑rate production.
The acquisition aligns with Mercury’s recent earnings beat and analyst confidence in its high‑margin platform. The company’s continued focus on capacity expansion and operational efficiency is expected to sustain its upward trajectory in backlog and free cash flow.
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