Mercury and Cicor Group Create Long-Term Strategic Business Relationship In Support of European Defense
Mercury Systems (NASDAQ: MRCY) has announced a strategic supply agreement with Cicor Group (SIX: CICN) involving the sale of Mercury's manufacturing operation in Plan-Les-Ouates, Switzerland. Under the five-year agreement, Cicor will supply electronic products to Mercury, with production relocating to Cicor's sites in Newport, UK, and Bronschhofen, Switzerland, over the next 18 months.
The transaction, expected to complete within one month subject to closing conditions, allows Mercury's facilities in Switzerland, Spain, and the UK to focus on engineering design and systems integration. This strategic move aims to meet increasing European and global demand for commercial defense products. Mercury will maintain a robust supply chain by sourcing boards from both Cicor and its U.S. operations.
Mercury Systems (NASDAQ: MRCY) ha annunciato un accordo strategico di fornitura con Cicor Group (SIX: CICN) riguardante la vendita dell'impianto produttivo di Mercury a Plan-Les-Ouates, Svizzera. In base a questo accordo quinquennale, Cicor fornirà prodotti elettronici a Mercury, con la produzione che sarà trasferita nei prossimi 18 mesi presso gli stabilimenti di Cicor a Newport, Regno Unito, e Bronschhofen, Svizzera.
La transazione, che si prevede venga completata entro un mese, subordinata al rispetto delle condizioni di chiusura, consentirà alle strutture di Mercury in Svizzera, Spagna e Regno Unito di concentrarsi sulla progettazione ingegneristica e sull'integrazione di sistemi. Questa mossa strategica mira a soddisfare la crescente domanda europea e globale di prodotti per la difesa commerciale. Mercury manterrà una catena di fornitura solida approvvigionandosi di schede sia da Cicor sia dalle sue operazioni negli Stati Uniti.
Mercury Systems (NASDAQ: MRCY) ha anunciado un acuerdo estratégico de suministro con Cicor Group (SIX: CICN) que implica la venta de la operación de fabricación de Mercury en Plan-Les-Ouates, Suiza. Bajo este acuerdo de cinco años, Cicor suministrará productos electrónicos a Mercury, trasladando la producción a las instalaciones de Cicor en Newport, Reino Unido, y Bronschhofen, Suiza, durante los próximos 18 meses.
La transacción, que se espera completar en un mes sujeta a condiciones de cierre, permitirá que las instalaciones de Mercury en Suiza, España y Reino Unido se centren en el diseño de ingeniería y la integración de sistemas. Este movimiento estratégico busca satisfacer la creciente demanda europea y global de productos de defensa comercial. Mercury mantendrá una cadena de suministro sólida obteniendo placas tanto de Cicor como de sus operaciones en EE.UU.
Mercury Systems (NASDAQ: MRCY)는 Cicor Group (SIX: CICN)과 스위스 플랜-레-우아테에 위치한 Mercury의 제조 시설 매각을 포함하는 전략적 공급 계약을 발표했습니다. 5년 계약에 따라 Cicor는 Mercury에 전자 제품을 공급하며, 향후 18개월 동안 생산은 영국 뉴포트와 스위스 브론스호펜에 있는 Cicor의 시설로 이전될 예정입니다.
거래는 종료 조건 충족 시 한 달 이내에 완료될 것으로 예상되며, 이를 통해 Mercury의 스위스, 스페인 및 영국 시설은 엔지니어링 설계와 시스템 통합에 집중할 수 있게 됩니다. 이 전략적 조치는 유럽 및 전 세계 상업 방위 제품에 대한 증가하는 수요를 충족하는 것을 목표로 합니다. Mercury는 Cicor와 미국 내 사업장에서 보드를 조달하여 견고한 공급망을 유지할 것입니다.
Mercury Systems (NASDAQ : MRCY) a annoncé un accord stratégique de fourniture avec Cicor Group (SIX : CICN) portant sur la vente de l’usine de production de Mercury à Plan-Les-Ouates, en Suisse. Dans le cadre de cet accord de cinq ans, Cicor fournira des produits électroniques à Mercury, la production étant transférée au cours des 18 prochains mois vers les sites de Cicor à Newport, au Royaume-Uni, et à Bronschhofen, en Suisse.
La transaction, qui devrait être finalisée dans un délai d’un mois sous réserve des conditions de clôture, permettra aux installations de Mercury en Suisse, en Espagne et au Royaume-Uni de se concentrer sur la conception technique et l’intégration des systèmes. Cette démarche stratégique vise à répondre à la demande croissante de produits de défense commerciale en Europe et dans le monde. Mercury maintiendra une chaîne d’approvisionnement solide en s’approvisionnant en cartes électroniques auprès de Cicor ainsi que de ses opérations américaines.
Mercury Systems (NASDAQ: MRCY) hat eine strategische Liefervereinbarung mit Cicor Group (SIX: CICN) angekündigt, die den Verkauf von Mercurys Fertigungsbetrieb in Plan-Les-Ouates, Schweiz, umfasst. Im Rahmen der fünfjährigen Vereinbarung wird Cicor elektronische Produkte an Mercury liefern, wobei die Produktion in den nächsten 18 Monaten auf Cicors Standorte in Newport, Großbritannien, und Bronschhofen, Schweiz, verlagert wird.
Die Transaktion, die voraussichtlich innerhalb eines Monats unter Vorbehalt der Abschlussbedingungen abgeschlossen wird, ermöglicht es Mercurys Einrichtungen in der Schweiz, Spanien und Großbritannien, sich auf Engineering-Design und Systemintegration zu konzentrieren. Dieser strategische Schritt zielt darauf ab, die steigende europäische und globale Nachfrage nach kommerziellen Verteidigungsprodukten zu erfüllen. Mercury wird eine stabile Lieferkette aufrechterhalten, indem es Leiterplatten sowohl von Cicor als auch von seinen US-Standorten bezieht.
- Strategic focus shift to higher-value engineering design and systems integration
- Secured 5-year supply agreement ensuring operational continuity
- Enhanced ability to scale operations for growing European defense market demand
- Maintained supply chain diversity through dual-sourcing from Cicor and U.S. operations
- Divestment of manufacturing assets in Switzerland
- 18-month transition period could present operational challenges
- Increased dependency on external supplier for electronic products
Insights
Mercury's strategic partnership with Cicor represents a significant operational restructuring that aligns with broader defense industry trends toward specialized production networks. By divesting its Swiss manufacturing operation while securing a five-year supply agreement, Mercury is refocusing its European facilities on higher-margin activities like engineering design and systems integration.
This vertical disintegration strategy allows Mercury to leverage Cicor's manufacturing expertise while concentrating internal resources on core competencies. The relocation of production to Cicor's UK and Switzerland facilities over an 18-month period creates temporary transition risk but potentially improves long-term operational efficiency.
The timing aligns with increased European defense spending amid regional security concerns. By maintaining dual-sourcing between Cicor and U.S. operations, Mercury preserves supply chain resilience—particularly important given recent global supply disruptions in the defense sector.
While the announcement lacks financial details about the transaction value or expected cost savings, the strategic rationale appears sound. For defense contractors, manufacturing partnerships often enable more efficient capital allocation and improved focus on system-level innovations where margins are typically higher.
The five-year commitment suggests confidence in the relationship, though successful execution during the transition period will be critical to realizing the intended benefits of this restructuring without disrupting current programs.
ANDOVER, Mass., April 15, 2025 (GLOBE NEWSWIRE) -- Mercury Systems, Inc. (NASDAQ: MRCY, www.mrcy.com), a technology company that delivers mission-critical processing power to the edge, today announced it has entered into a strategic supply agreement under which Cicor Group (SIX Swiss Exchange: CICN) will acquire a manufacturing operation in Plan-Les-Ouates, Switzerland, and supply Mercury with electronic products over the next five years.
Mercury Mission Systems International S.A. is a leading provider of mission-critical processing products and solutions to the international aerospace and defense industry. In anticipation of increased European and global demand for commercial defense products, Mercury will transition its Swiss electronic board manufacturing operations to Cicor, the leading European manufacturer for aerospace and defense electronics. This will allow Mercury’s facilities in Switzerland, Spain, and the United Kingdom to focus on their core competencies of engineering design and systems integration, which is expected to drive the company’s continued success and next phase of growth in the international market.
The transaction is expected to be completed within approximately one month, subject to customary closing conditions including end customer consents. Mercury and Cicor have jointly decided to relocate production to the Cicor sites in Newport, United Kingdom, and Bronschhofen, Switzerland, within the next 18 months. As part of the agreement, Mercury will purchase boards from Cicor, as well continue to source boards from Mercury’s U.S. operations, to ensure a robust supply chain. Both parties intend to further expand the strategic business relationship in the coming years.
“Mercury remains dedicated to delivering mission-critical processing capabilities to the European and global aerospace and defense sector,” said Paul Tanner, Vice President of Mercury International. “This agreement with Cicor will allow us to scale quickly to meet the growing demand for leading-edge commercial processing technologies around the world.”
Mercury Systems – Innovation that matters®
Mercury Systems is a technology company that delivers mission-critical processing power to the edge, making advanced technologies profoundly more accessible for today’s most challenging aerospace and defense missions. The Mercury Processing Platform allows customers to tap into innovative capabilities from silicon to system scale, turning data into decisions on timelines that matter. Mercury’s products and solutions are deployed in more than 300 programs and across 35 countries, enabling a broad range of applications in mission computing, sensor processing, command and control, and communications. Mercury is headquartered in Andover, Massachusetts, and has 23 locations worldwide. To learn more, visit mrcy.com. (Nasdaq: MRCY)
Forward-Looking Safe Harbor Statement
This press release contains certain forward-looking statements, as that term is defined in the Private Securities Litigation Reform Act of 1995, including those relating to the Company's focus on enhanced execution of the Company's strategic plan. You can identify these statements by the words “may,” “will,” “could,” “should,” “would,” “plans,” “expects,” “anticipates,” “continue,” “estimate,” “project,” “intend,” “likely,” “forecast,” “probable,” “potential,” and similar expressions. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected or anticipated. Such risks and uncertainties include, but are not limited to, continued funding of defense programs, the timing and amounts of such funding, general economic and business conditions, including unforeseen weakness in the Company’s markets, effects of any U.S. federal government shutdown or extended continuing resolution, effects of geopolitical unrest and regional conflicts, competition, changes in technology and methods of marketing, delays in or cost increases related to completing development, engineering and manufacturing programs, changes in customer order patterns, changes in product mix, continued success in technological advances and delivering technological innovations, changes in, or in the U.S. government’s interpretation of, federal export control or procurement rules and regulations, changes in, or in the interpretation or enforcement of, environmental rules and regulations, market acceptance of the Company's products, shortages in or delays in receiving components, supply chain delays or volatility for critical components, production delays or unanticipated expenses including due to quality issues or manufacturing execution issues, capacity underutilization, increases in scrap or inventory write-offs, failure to achieve or maintain manufacturing quality certifications, such as AS9100, the impact of supply chain disruption, inflation and labor shortages, among other things, on program execution and the resulting effect on customer satisfaction, inability to fully realize the expected benefits from acquisitions, restructurings, and operational efficiency initiatives or delays in realizing such benefits, challenges in integrating acquired businesses and achieving anticipated synergies, effects of shareholder activism, increases in interest rates, changes to industrial security and cyber-security regulations and requirements and impacts from any cyber or insider threat events, changes in tax rates or tax regulations, changes to interest rate swaps or other cash flow hedging arrangements, changes to generally accepted accounting principles, difficulties in retaining key employees and customers, litigation, including the dispute arising with the former CEO over his resignation, unanticipated costs under fixed-price service and system integration engagements, and various other factors beyond our control. These risks and uncertainties also include such additional risk factors as are discussed in the Company's filings with the U.S. Securities and Exchange Commission, including its Annual Report on Form 10-K for the fiscal year ended June 28, 2024 and subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. The Company cautions readers not to place undue reliance upon any such forward-looking statements, which speak only as of the date made. The Company undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made.
INVESTOR CONTACT
Tyler Hojo
Vice President, Investor Relations
Tyler.Hojo@mrcy.com
MEDIA CONTACT
Turner Brinton
Senior Director, Corporate Communications
Turner.Brinton@mrcy.com
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