Aviat Networks expands 5G with intent to acquire Redline Communications
Aviat Networks Inc, the leading expert in LTE/5G wireless transport, and Redline Communications Group, Inc., a leading provider in mission-critical data infrastructure, have announced that they have entered into an arrangement agreement under which Aviat will acquire all outstanding shares of Redline for CAD$0.90 per common share (approximately USD$0.71 per share), in an all-cash transaction valued at approximately CAD $16.2 million (approximately USD$12.9 million). Aviat expects to fully fund the acquisition from cash on hand. Subject to customary closing conditions and necessary regulatory approvals, the transaction is expected to close within four months.
The acquisition creates an integrated end-to-end offering for wireless access and transport in the private networks segment. It leverages Aviat’s sales channel to address a $8 billion private LTE/5G addressable market and increases Aviat’s reach in mission-critical industrial private networks.
Commenting on the Transaction, Pete Smith, Aviat CEO, said, “The acquisition expands Aviat’s share in private networks by adding Redline’s wireless network access capabilities in industrial PTP/PTMP and licensed Private LTE and 5G to Aviat’s existing wireless transport backhaul solutions. Redline products will leverage Aviat’s sales and marketing presence for broader reach. Likewise, Aviat will benefit from Redline’s presence in the Oil and Gas, and Transportation verticals.”
Smith continued, “We expect this deal to be immediately accretive to Aviat’s gross margin, adjusted EBITDA, non-GAAP EPS, and free cash flow all in the first year. We look forward to finalizing this transaction which we believe will generate significant value for our shareholders.”
This Transaction is expected to provide both Aviat and Redline customers with a broader, more integrated portfolio of wireless access and transport offerings and reinforces Aviat’s roadmap and commitment to the future of private networks as the environment evolves to 5G and beyond.
Aviat and Redline will run independently until the closing of the transaction.