Ceragon bolsters microwave backhaul business with acquisition

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."

For more:
- see this release

Related articles:
Microwave backhaul and the future of 4G
Ethernet mobile backhaul equipment on track for big spike in 2010
Smartphone Data Usage Driving Wireless Carriers to Beef Up Backhaul Quickly, Says In-Stat  

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