Cicor, Mercury Enter Into a Strategic Supply Partnership

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Cicor Group has entered into a strategic supply agreement with Mercury Mission Systems International S.A. (Mercury), a leading technology company active in the global aerospace and defence industry, under which Cicor will acquire a manufacturing operation in Plan-Les-Ouates (Switzerland).

In anticipation of increased European and global demand for defence products, Mercury's management has decided to streamline internal operations and transfer a part of its European electronics manufacturing to Cicor. This will allow Mercury to focus on its core competencies of engineering design and systems integration to drive growth in the international market. Cicor, the leading European manufacturing partner for aerospace and defence (A&D) electronics, was selected as the outsourcing partner due to its broad expertise and geographic presence across Europe.

The collaboration includes the acquisition of a Mercury manufacturing site in Plan-Les-Ouates (Switzerland) with 34 employees. Mercury and Cicor have jointly decided to relocate production to the Cicor sites in Newport (UK) and Bronschhofen (Switzerland) within the next 18 months.

The transaction is further proof that Cicor's pan-European platform for the development and manufacturing of mission critical electronic solutions responds perfectly well to the need of the European A&D industry to establish robust and scalable supply chains. Together with the announced signing of an agreement to acquire MADES S.A.U. in Spain, the strategic partnership with Mercury will further expand Cicor's presence in A&D.

The transaction is expected to be completed within approximately one month, subject to customary closing conditions including end customer consents. Mercury has committed to Cicor to purchase over the next 5 years products with a total value in the high double digit million CHF range. Both parties intend to further deepen the strategic business relationship, which should create additional revenue potential in the coming years.