Sterne Agee Comments on Mercury Systems Sale

On Thursday, Reuters reported that The Boeing Company (NYSE: BA) is considering purchasing Mercury Systems, Inc. (NASDAQ: MRCY)

Mercury Systems is seeking around $500 million and hired Evercore Partners for the sale, according to Reuters report.

In a report published Friday, Sterne Agee analyst Peter Arment commented that a strategic company is likely to pay in the mid-teens EBITDA for Mercury systems. Mercury is trading at over 18x FY15E EV/ EBITDA at current prices, which implies a takeout range of between $15.00 and $19.00 per share.

Mercury Systems closed at $13.80 on Friday, up over 3.06 percent.