(Reuters) – Mercury Systems Inc on Tuesday announced the exit of finance chief Michael Ruppert and said the defense technology firm had initiated a review of strategic alternatives.
The news comes a year after activist hedge fund Starboard Value LP, which owns about 7.33% of Mercury, sent an open letter to the board asking it to eliminate the shareholders rights plan that was adopted in December 2021.
Separately, activist investor Jana Partners had said that it would push Mercury to consider options for its business, including a potential sale.
“There can be no assurance that any transaction will be approved or consummated,” Mercury Systems, which develops and manufactures computer hardware and software products for the aerospace and defense industry, said in a statement on Tuesday.
“The company does not intend to disclose developments relating to this process unless and until the board has approved a specific agreement or transaction or has terminated its review.”
Mercury Systems had a market capitalization of $2.84 billion as of Tuesday’s close.
Citi and Goldman Sachs & Co. LLC are serving as financial advisors to Mercury.
The company also reported second-quarter revenue of $229.6 million, compared with $220.4 million a year ago.
It said CFO Ruppert was stepping down effective Feb. 17 to accept an opportunity at a private company and that Mercury has started a search process for his replacement.
(Reporting by Kannaki Deka in Bengaluru; Editing by Devika Syamnath)
