Mercury Acquires Star Lab to Advance Its Leadership Position in Secure Processing

Rhea-AI Summary

Mercury Systems (NASDAQ: MRCY) has completed the acquisition of Star Lab, a subsidiary of Wind River Systems, to strengthen its secure processing capabilities for aerospace and defense applications. Star Lab specializes in anti-tamper and cybersecurity software solutions that protect mission-critical processors from advanced attacks.

The acquisition builds upon Mercury's decade-long relationship with Star Lab, whose technology has been integrated into Mercury's Common Processing Architecture and BuiltSECURE™ products. Star Lab will join Mercury's Processing Technologies business unit, enhancing Mercury's product portfolio including rugged servers, embedded processing cards, mixed signal cards, avionics, and integrated processing solutions.

Positive

• Strengthens Mercury's leadership position in secure processing for aerospace and defense
• Expands product portfolio with proven cybersecurity protection solutions
• Leverages existing 10+ year partnership, suggesting smooth integration
• Enhances multiple product lines including servers, processing cards, and avionics

Negative

• May face integration challenges and costs
• Could experience delays in realizing acquisition benefits as mentioned in risk factors
• Potential supply chain disruptions could affect combined operations

Insights

Defense Technology Analyst

Mercury strengthens defense cybersecurity position by acquiring long-term partner Star Lab, enhancing integrated security capabilities across its product portfolio.

Mercury's acquisition of Star Lab represents a strategic enhancement of their secure processing capabilities in the defense sector. This move isn't a leap into unknown territory but rather capitalizes on a decade-long relationship where Mercury has already incorporated Star Lab's technology into deployed systems and awarded programs.

Star Lab's anti-tamper and cybersecurity software provides critical protection against sophisticated threats, specifically designed to mitigate reverse engineering and safeguard confidential data even when systems are physically compromised. This capability addresses a growing concern in defense applications where protecting critical program information from adversarial exploitation is essential.

What makes this acquisition particularly valuable is the compatibility across Mercury's diverse product lineup. Star Lab's security solutions can enhance everything from rugged servers and embedded processing cards to avionics systems, creating a more comprehensive security approach. By integrating Star Lab into their Processing Technologies business unit, Mercury can now offer more tightly integrated security across their entire product portfolio.

This acquisition aligns perfectly with the increasing emphasis on securing defense technologies against sophisticated nation-state threats. As military systems become more software-defined and connected, the ability to provide holistic security solutions rather than piecemeal approaches gives Mercury a stronger position in the evolving defense technology landscape.

Cybersecurity Expert

Acquisition brings advanced processor-level security capabilities in-house, strengthening Mercury's ability to protect systems against sophisticated cyber attacks.

Star Lab's technology addresses a critical vulnerability in defense systems - processor-level security that works even when physical compromise occurs. This is increasingly vital as military hardware often operates in contested environments where adversaries might gain physical access to equipment.

Their security approach implements a comprehensive methodology to deter, impede, detect, and respond to exploitation attempts. This multi-layered strategy aligns with modern cybersecurity frameworks that assume breach and build in resilience rather than relying solely on perimeter defenses.

What's technically significant is how Star Lab's solutions protect systems at the most fundamental level. Their anti-tamper technology creates a robust shield against sophisticated reverse engineering attempts while maintaining data confidentiality even under compromise conditions. This capability is particularly valuable for mission-critical processors that manage sensitive information in aerospace and defense applications.

The press release highlights that Star Lab's software is "readily and easily integrated" across Mercury's product lines, indicating a flexible security architecture that doesn't require extensive customization. This adaptability means Mercury can enhance security across their entire portfolio more efficiently.

As government missions increasingly require comprehensive security approaches, this acquisition positions Mercury to deliver fully integrated protection rather than pieced-together solutions from multiple vendors. This vertical integration creates a more cohesive security posture for the mission-critical systems Mercury provides to the defense community.

ANDOVER, Mass., May 01, 2025 (GLOBE NEWSWIRE) -- Mercury Systems, Inc. (NASDAQ: MRCY, www.mrcy.com), a technology company that delivers mission-critical processing to the edge, today announced the closure of an agreement that will further advance the company’s leadership position in secure processing capabilities for aerospace and defense applications.

Mercury has completed the acquisition of Star Lab, a subsidiary of Wind River Systems, Inc., that provides anti-tamper and cybersecurity software solutions designed to protect mission-critical processors from advanced attacks. Mercury has worked with Star Lab for more than a decade, leveraging its technology in deployed and awarded Common Processing Architecture and BuiltSECURE™ products, which mitigate reverse engineering and safeguard confidential data from adversarial threats even when a system has been compromised. This unique technology is required across many defense applications in order to deter, impede, detect, and respond to the exploitation of critical program information.

Star Lab software is readily and easily integrated with many other Mercury products to provide unique and valuable cybersecurity protection for customers. The acquisition will enhance a wide range of Mercury products and solutions, such as rugged servers, embedded processing cards, mixed signal cards, avionics, and integrated processing solutions. Star Lab will join Mercury’s Processing Technologies business unit.

“Mercury is a leader in secure processing technologies for aerospace and defense platforms, with unique expertise and IP related to advanced cryptography, secure boot, and physical protection technologies,” said Tom Smelker, Mercury’s Senior Vice President of Processing Technologies. “As holistic security becomes increasingly essential for government missions, the acquisition of Star Lab will allow Mercury to deliver an expanded portfolio of fully integrated security solutions to our customers and partners.”

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, including tariffs, 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, adherence to required manufacturing standards, 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, such as the deductibility of internal research and development, 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

FAQ

What is the purpose of Mercury Systems' acquisition of Star Lab?

Mercury Systems acquired Star Lab to advance its leadership position in secure processing capabilities for aerospace and defense applications, specifically enhancing its anti-tamper and cybersecurity software solutions.

How will the Star Lab acquisition affect MRCY's product portfolio?

The acquisition will enhance Mercury's products including rugged servers, embedded processing cards, mixed signal cards, avionics, and integrated processing solutions with advanced cybersecurity protection capabilities.

What is Star Lab's relationship history with Mercury Systems (MRCY)?

Mercury Systems has worked with Star Lab for more than a decade, using their technology in deployed Common Processing Architecture and BuiltSECURE™ products.

Which division will Star Lab join within Mercury Systems?

Star Lab will join Mercury's Processing Technologies business unit.

What type of technology does Star Lab provide to Mercury Systems (MRCY)?

Star Lab provides anti-tamper and cybersecurity software solutions designed to protect mission-critical processors from advanced attacks and prevent reverse engineering of confidential data.