Backhaul specialist Ceragon Networks announced it is acquiring Norwegian-based Nera Networks from Eltek ASA for approximately $48.5 million on a cash free/debt free basis. NAS is considered an expert in long-distance microwave links with a global customer base in Europe, Latin America and Africa.
Both companies' assets and core competencies are now combined into a single integrated organization, product family and customer base after the two closed the transaction Jan. 19. Ceragon said the acquisition gives it immediate scale and reach as well as providing a complete family of short- and long-haul microwave backhaul solutions. The acquisition will be funded through a combination of cash and approximately $35 million of bank debt. The transaction is expected to be accretive on a quarterly basis by the end of 2011.
"This is a very important step for both our companies, and one which will allow us--together--to immediately become the premier microwave backhaul specialist at a crucial juncture for the industry," said Ira Palti, President and CEO of Ceragon Networks. "We are in the early stages of a period of demand driven by continued subscriber growth in key regions and exponential increases in mobile data. During such a period, scale and reach are particularly important. This combination enables us to achieve both and allows for smooth integration due to the complementary nature of the two companies."
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