Ceragon Completes Acquisition of Siklu, Strengthens mmWave Offering

Ceragon Networks Ltd., the global innovator and solutions provider of 5G wireless transport, has completed the previously announced acquisition of Siklu, a provider of multi-Gigabit “wireless fiber” connectivity in urban, suburban and rural areas.

The acquisition creates a more comprehensive, end-to-end offering ideally targeted to small service providers and private networks around the world. In particular, the combination gives Ceragon immediate access to Siklu’s established leadership in the millimeter-wave market in North America including its Fixed Wireless Access offering.

Doron Arazi, Ceragon CEO, said “This acquisition is expected to accelerate our growth strategy by expanding our presence with the fastest-growing segments of the market and enhancing our end-to-end solutions to better address the evolving needs of private networks. In addition, I expect that this acquisition will have a positive impact on our gross margins in the near-term and our profitability in the intermediate to long term. We welcome the talented and experienced Siklu team to Ceragon, and integration initiatives are underway and progressing according to plan.”

Ronen Ben-Hamou, Siklu’s CEO, has joined Ceragon’s management team, utilizing his experience to help with a smooth integration.

The terms of the transaction are substantially in-line with the considerations previously disclosed.

Ceragon expects the acquisition will increase its 2024 revenue by approximately $25-$29 million. 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. Ceragon management expects the combination to improve Siklu’s results by leveraging Ceragon’s working capital management capabilities, as well as expanded profitability following synergies. Inclusive of these business improvements, management anticipates the transaction to be accretive to non-GAAP earnings by the second half of 2024. Ceragon expects to include the Siklu acquisition in its 2024 guidance, to be provided, in combination with the release of Ceragon’s fourth quarter results, in early 2024.

As part of this transaction, Ceragon expanded its total loan credit facility by $5 million to $77 million in total, and Siklu’s primary lender joined Ceragon’s lending consortium.

Ceragon Networks Ltd. is the global innovator and leading solutions provider of 5G wireless transport. We help operators and other service providers worldwide increase operational efficiency and enhance end customers’ quality of experience with innovative wireless backhaul and fronthaul solutions.

The company's customers include service providers, public safety organizations, government agencies and utility companies, which use our solutions to deliver 5G & 4G broadband wireless connectivity, mission-critical multimedia services, stabilized communications, and other applications at high reliability and speed.

Ceragon’s unique multicore technology and disaggregated approach to wireless transport provides highly reliable, fast to deploy, high-capacity wireless transport for 5G and 4G networks with minimal use of spectrum, power, real estate, and labor resources. It enables increased productivity, as well as simple and quick network modernization, positioning Ceragon as a leading solutions provider for the 5G era.