Ceragon Networks To Acquire Siklu For Enterprise Value Of Up To $15 Mln - Quick Facts

(RTTNews) - Ceragon Networks Ltd. (CRNT), a provider of 5G wireless transport, said that it agreed to acquire Siklu, a provider of multi-Gigabit "wireless fiber" connectivity in urban, suburban and rural areas, for an enterprise value of $13 million - $15 million.

As consideration to Siklu's shareholders, Ceragon will issue approximately 1.5 million ordinary shares. Ceragon is expected to assume financial liabilities of approximately $10 million - $12 million.

Ceragon is expected to generate about $25 million -$29 million in incremental 2024 revenue from this acquisition. The acquisition is expected to be accretive to the consolidated gross margins of Ceragon as Siklu's margins are at levels significantly higher than Ceragon's historical margins. The company anticipates the transaction to be accretive to non-GAAP earnings by the second half of 2024.

As part of the transaction, Ceragon will expand its total loan credit facility by $5 million to $77 million total, and Siklu's primary lender will join Ceragon's lending consortium.

Ceragon expects the deal to close by the end of 2023.