Expected to be Accretive to Non-GAAP Earnings Basis, by the
Second Half of 2025
Expected to Accelerate Ceragon's Private Networks Business,
Particularly in the Energy and Utilities Markets
ROSH
HA'AIN, Israel,
Jan. 14,
2025 /PRNewswire/
-- Ceragon (NASDAQ: CRNT), a leading
solutions provider of end-to-end wireless connectivity, today
announced that it has entered into a definitive agreement to
acquire End 2 End Technologies, LLC a US systems integration and
software development company that serves Private Networks,
primarily in the Energy and Utilities markets. The consideration
amounts to approximately $8.5
million, and up to an additional $4.3
million subject to achieving certain financial goals
primarily in 2025 and paid mostly in 2026. At closing, Ceragon will
finance the cash consideration from its available cash and unused
credit facilities and will issue approximately 215,000 ordinary
shares.
Ceragon is expected to generate $15-19 million in incremental 2025 revenue from
this acquisition. Ceragon management expects the combination to
accelerate its strategy in the Private Networks domain and
anticipates the transaction to be accretive to non-GAAP earnings by
the second half of 2025.
Doron Arazi, Ceragon CEO, said,
"The acquisition of End 2 End Technologies is expected to
accelerate the execution of our strategy, increase our market share
in private networks in North
America and enhance our capabilities in the fastest-growing
portion of the telecommunications connectivity market. End 2 End
Technologies also adds proven system integration capabilities, as
well as a unique network management software platform that is being
sold globally, primarily in the energy space."
"End 2 End Technologies also has an impressive team and strong
leadership, with deep technical expertise and a strong full
services suite offering, specifically designed for the markets it
serves," added Arazi. "We are confident we can leverage End 2 End
Technologies' team expertise, proprietary software, and system
integration capabilities, to further enrich our offering to private
networks globally, in multiple verticals."
For over a decade, End 2 End Technologies has served dozens of
customers in the US, building a strong brand with its unique
expertise in the Energy and Utilities markets. The End 2 End
Technologies has approximately 50 employees and is recognized for
its deep technical expertise in radio frequency communications,
both in broadband and narrowband, as well as its wide support of
industrial applications. End 2 End Technologies believes in driving
innovation through the development of its own proprietary software,
which very much aligns with Ceragon's approach to innovation.
Greg Crow, End 2 End Technologies co-founder and CEO, said,
"Ceragon's strategy to grow its market share in private networks,
specifically in energy and utilities as well as its current
offerings, positioning and footprint in the global markets, make it
a strong fit to End 2 End Technologies' growth and development
aspirations. During the due diligence and negotiation phase, we
were also exposed to Ceragon's culture, and we believe that there
is a great match that can support a very successful
combination."
The closing of the transaction is subject to customary closing
conditions. Ceragon expects the deal to close by the end of
January 2025.
About End 2 End Technologies
End 2 End Technologies offers a unique combination of wireless
communications and information technology expertise. Operating
primarily in the Energy and Utilities verticals, End 2 End
Technologies provides all products and services required for
business-driven connectivity solutions from initial design to
deployment and management of all network components and IIoT/Edge
devices. For more information, visit https://e2etechinc.com.
About Ceragon
Ceragon (NASDAQ: CRNT) is the global innovator and leading
solutions provider of end-to-end wireless connectivity,
specializing in transport, access, and AI-powered managed &
professional services. Through our commitment to excellence, we
empower customers to elevate operational efficiency and enrich the
quality of experience for their end users.
Our customers include service providers, utilities, public
safety organizations, government agencies, energy companies, and
more, who rely on our wireless expertise and cutting-edge solutions
for 5G & 4G broadband wireless connectivity, mission-critical
services, and an array of applications that harness our ultra-high
reliability and speed. Ceragon solutions are deployed by more than
600 service providers, as well as more than 1,600 private network
owners, in more than 130 countries. Through our innovative,
end-to-end solutions, covering hardware, software, and managed
& professional services, we enable our customers to embrace the
future of wireless technology with confidence, shaping the next
generation of connectivity and service delivery. Ceragon delivers
extremely reliable, fast to deploy, high-capacity wireless
solutions for a wide range of communication network use cases,
optimized to lower TCO through minimal use of spectrum, power, real
estate, and labor resources - driving simple, quick, and
cost-effective network modernization and positioning Ceragon as a
leading solutions provider for the "connectivity everywhere"
era.
For more information please visit: www.ceragon.com.
Ceragon Networks® and FibeAir® are registered trademarks of
Ceragon Networks Ltd. in the United
States and other countries. CERAGON® is a trademark of
Ceragon, registered in various countries. Other names mentioned are
owned by their respective holders.
Safe Harbor
This press release contains statements that constitute
"forward-looking statements" within the meaning of the Securities
Act of 1933, as amended and the Securities Exchange Act of 1934, as
amended, and the safe-harbor provisions of the Private Securities
Litigation Reform Act of 1995. Such forward-looking statements are
based on the current beliefs, expectations and assumptions of
Ceragon's management about Ceragon's business, financial condition,
results of operations, micro and macro market trends and other
issues addressed or reflected therein. Examples of forward-looking
statements include, but are not limited to, statements regarding:
projections of demand, revenues, net income, gross margin, capital
expenditures and liquidity, competitive pressures, order timing,
supply chain and shipping, components availability, growth
prospects, product development, financial resources, cost savings
and other financial and market matters. You may identify these and
other forward-looking statements by the use of words such as "may",
"plans", "anticipates", "believes", "estimates", "targets",
"expects", "intends", "potential" or the negative of such terms, or
other comparable terminology, although not all forward-looking
statements contain these identifying words.
Although we believe that the projections reflected in such
forward-looking statements are based upon reasonable assumptions,
we can give no assurance that our expectations will be obtained or
that any deviations therefrom will not be material. Such
forward-looking statements involve known and unknown risks and
uncertainties that may cause Ceragon's future results or
performance to differ materially from those anticipated, expressed
or implied by such forward-looking statements. These risks and
uncertainties include, but are not limited to: the risk that the
transaction may not be completed in a timely manner or at all,
which may adversely affect the companies' businesses and the price
of Ceragon's traded securities; uncertainties as to the timing of
the consummation of the transaction and the potential failure to
satisfy the conditions to the consummation of the transaction;
delays, disruptions or increased costs in the integration of End 2
End Technologies' business with Ceragon; unanticipated
restructuring costs may be incurred or undisclosed liabilities
assumed; attempts to retain key personnel, customers, and vendors
may not succeed; risks related to diverting management's attention
from Ceragon's ongoing business operations; exposure to inflation,
currency rate and interest rate fluctuations and risks associated
with doing business locally and internationally, as well as
fluctuations in the market price of Ceragon's traded securities;
the effects of the evolving nature of the war situation in
Israel and the related evolving
regional conflicts; the impact of general economic conditions on
the on Ceragon's and End 2 End Technologies' business; ongoing or
potential litigations or disputes, incidental to the conduct of End
2 End Technologies' ongoing business, with customers, suppliers,
landlords, or other third parties; potential adverse reactions or
changes to business relationships resulting from the announcement
or completion of the transaction; potential negative changes in
general economic conditions in the regions or the industries in
which Ceragon and End 2 End Technologies operate; and such other
risks, uncertainties and other factors that could affect our
results of operation, as further detailed in Ceragon's most recent
Annual Report on Form 20-F, as published on March 21, 2024, as well as other documents that
may be subsequently filed by Ceragon from time to time with the
Securities and Exchange Commission.
We caution you not to place undue reliance on forward-looking
statements, which speak only as of the date hereof. Ceragon does
not assume any obligation to update any forward-looking statements
in order to reflect events or circumstances that may arise after
the date of this release unless required by law.
While we believe that we have a reasonable basis for each
forward-looking statement contained in this press release, we
caution you that these statements are based on a combination of
facts and factors currently known by us and our projections of the
future, about which we cannot be certain. In addition, any
forward-looking statements represent Ceragon's views only as of the
date of this press release and should not be relied upon as
representing its views as of any subsequent date. Ceragon does not
assume any obligation to update any forward-looking statements
unless required by law.
Ceragon's public filings are available on the Securities and
Exchange Commission's website at www.sec.gov and may also
be obtained from Ceragon's website at www.ceragon.com.
Logo:
https://mma.prnewswire.com/media/1704355/Ceragon_Networks_Ltd_Logo.jpg
Investor Contact:
Rob
Fink
FNK IR
646-809-4048
crnt@fnkir.com
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SOURCE Ceragon Networks Ltd.