Ceragon to Acquire End 2 End Technologies, Expanding its Offering to Private Networks in North America
Ceragon (NASDAQ: CRNT) has announced a definitive agreement to acquire End 2 End Technologies, a US systems integration and software development company, for approximately $8.5 million plus potential additional $4.3 million tied to 2025 financial goals. The acquisition will be financed through available cash, unused credit facilities, and the issuance of 215,000 ordinary shares.
The deal is expected to generate $15-19 million in incremental revenue for Ceragon in 2025 and become accretive to non-GAAP earnings by the second half of 2025. End 2 End Technologies, with approximately 50 employees, specializes in private networks for Energy and Utilities markets, offering system integration capabilities and proprietary network management software.
The acquisition aims to expand Ceragon's market share in private networks in North America and enhance its capabilities in telecommunications connectivity. The transaction is expected to close by the end of January 2025, subject to customary closing conditions.
Ceragon (NASDAQ: CRNT) ha annunciato un accordo definitivo per acquisire End 2 End Technologies, un'azienda statunitense di integrazione di sistemi e sviluppo software, per circa 8,5 milioni di dollari, più ulteriori 4,3 milioni potenzialmente legati agli obiettivi finanziari del 2025. L'acquisizione sarà finanziata tramite cassa disponibile, linee di credito non utilizzate e l'emissione di 215.000 azioni ordinarie.
Si prevede che l'operazione generi un incremento di 15-19 milioni di dollari nei ricavi per Ceragon nel 2025 e che diventi accretiva per gli utili non GAAP entro la seconda metà del 2025. End 2 End Technologies, con circa 50 dipendenti, si specializza in reti private per i mercati dell'energia e dei servizi pubblici, offrendo capacità di integrazione dei sistemi e software di gestione della rete proprietari.
L'acquisizione mira ad espandere la quota di mercato di Ceragon nelle reti private in Nord America e a migliorare le sue capacità di connettività nelle telecomunicazioni. Si prevede che la transazione si chiuda entro la fine di gennaio 2025, soggetta alle consuete condizioni di chiusura.
Ceragon (NASDAQ: CRNT) ha anunciado un acuerdo definitivo para adquirir End 2 End Technologies, una empresa estadounidense de integración de sistemas y desarrollo de software, por aproximadamente 8.5 millones de dólares más 4.3 millones adicionales vinculados a objetivos financieros de 2025. La adquisición se financiará a través de efectivo disponible, líneas de crédito no utilizadas y la emisión de 215,000 acciones ordinarias.
Se espera que el acuerdo genere entre 15 y 19 millones de dólares en ingresos adicionales para Ceragon en 2025 y que contribuya positivamente a las ganancias no GAAP en la segunda mitad de 2025. End 2 End Technologies, con aproximadamente 50 empleados, se especializa en redes privadas para los mercados de energía y servicios públicos, ofreciendo capacidades de integración de sistemas y software de gestión de redes propietario.
La adquisición tiene como objetivo expandir la cuota de mercado de Ceragon en redes privadas en América del Norte y mejorar sus capacidades en conectividad de telecomunicaciones. Se espera que la transacción se cierre a finales de enero de 2025, sujeta a las condiciones habituales de cierre.
세라곤 (NASDAQ: CRNT)은 엔드 투 엔드 테크놀로지스를 약 850만 달러에 인수하는 최종 계약을 발표했으며, 2025년 금융 목표와 관련된 추가 430만 달러가 발생할 가능성이 있습니다. 인수는 사용 가능한 현금, 미사용 신용 시설 및 215,000주 보통주 발행을 통해 자금 조달될 예정입니다.
이번 거래는 2025년 세라곤에 1,500만에서 1,900만 달러의 추가 수익을 창출하고, 2025년 하반기에는 비GAAP 순이익에 기여할 것으로 예상됩니다. 약 50명의 직원을 둔 엔드 투 엔드 테크놀로지스는 에너지 및 공공 유틸리티 시장을 위한 사설 네트워크를 전문으로 하며, 시스템 통합 역량과 독점 네트워크 관리 소프트웨어를 제공합니다.
이번 인수는 북미에서 세라곤의 사설 네트워크 시장 점유율을 확대하고, 통신 연결성 기능을 향상시키는 것을 목표로 하고 있습니다. 거래는 2025년 1월 말까지 완료될 것으로 예상되며, 관례적인 마감 조건에 따릅니다.
Ceragon (NASDAQ: CRNT) a annoncé un accord définitif pour acquérir End 2 End Technologies, une entreprise américaine d'intégration de systèmes et de développement de logiciels, pour environ 8,5 millions de dollars, plus une potentielle somme supplémentaire de 4,3 millions liée aux objectifs financiers de 2025. L'acquisition sera financée par les liquidités disponibles, des lignes de crédit non utilisées et l'émission de 215 000 actions ordinaires.
Il est prévu que cette opération génère entre 15 et 19 millions de dollars de revenus supplémentaires pour Ceragon en 2025 et qu'elle devienne positive pour les bénéfices non-GAAP au second semestre de 2025. End 2 End Technologies, avec environ 50 employés, se spécialise dans les réseaux privés pour les marchés de l'énergie et des services publics, offrant des capacités d'intégration de systèmes et un logiciel de gestion de réseau propriétaire.
L'acquisition vise à accroître la part de marché de Ceragon dans les réseaux privés en Amérique du Nord et à améliorer ses capacités de connectivité en télécommunications. La transaction devrait être finalisée d'ici fin janvier 2025, sous réserve des conditions habituelles de clôture.
Ceragon (NASDAQ: CRNT) hat eine endgültige Vereinbarung zur Übernahme von End 2 End Technologies, einem US-amerikanischen Systemintegrations- und Softwareentwicklungsunternehmen, für ungefähr 8,5 Millionen Dollar plus potenziell zusätzliche 4,3 Millionen Dollar, die an finanzielle Ziele für 2025 gekoppelt sind, angekündigt. Die Übernahme wird durch verfügbare Barmittel, nicht genutzte Kreditlinien und die Ausgabe von 215.000 Stammaktien finanziert.
Es wird erwartet, dass der Deal 2025 zusätzliche Einnahmen in Höhe von 15 bis 19 Millionen Dollar für Ceragon generiert und ab der zweiten Hälfte von 2025 einen positiven Beitrag zu den Non-GAAP-Gewinnen leistet. End 2 End Technologies, mit circa 50 Mitarbeitern, spezialisiert sich auf private Netzwerke für die Energie- und Versorgungsbranchen und bietet Integrationsfähigkeiten sowie proprietäre Netzwerkmanagementsoftware.
Die Übernahme zielt darauf ab, den Marktanteil von Ceragon im Bereich privater Netzwerke in Nordamerika zu erweitern und die Fähigkeiten in der Telekommunikationsverbindung zu verbessern. Die Transaktion soll bis Ende Januar 2025 abgeschlossen sein, vorbehaltlich der üblichen Abschlussbedingungen.
- Expected $15-19 million incremental revenue in 2025
- Accretive to non-GAAP earnings by H2 2025
- Expansion into growing private networks market in North America
- Acquisition of proprietary network management software platform
- Addition of 50 specialized employees and technical expertise
- Initial cash outlay of $8.5 million plus potential $4.3 million earnout
- Share dilution through issuance of 215,000 ordinary shares
Insights
This strategic acquisition marks a calculated move into the private networks sector, particularly notable for its $8.5 million upfront cost with an additional $4.3 million in performance-based earnouts. The deal structure, combining cash, credit facilities and approximately 215,000 shares, demonstrates a balanced approach to financing. The projected $15-19 million revenue contribution for 2025 suggests a reasonable revenue multiple of roughly 0.7x at the base price.
The acquisition's primary value drivers include: 1) Immediate access to the lucrative energy and utilities markets, 2) Integration of proprietary network management software and 3) Addition of 50 specialized employees with deep technical expertise. The expected accretion to non-GAAP earnings by H2 2025 indicates careful consideration of integration costs and synergy realization timeline.
For a company with a $386 million market cap, this represents a relatively low-risk expansion that could significantly enhance Ceragon's competitive position in the private networks space while maintaining financial flexibility.
This acquisition strategically positions Ceragon in the rapidly expanding private networks sector, particularly in the critical energy and utilities verticals. End 2 End Technologies' system integration capabilities and proprietary network management platform fill important gaps in Ceragon's service portfolio, enabling them to offer end-to-end solutions rather than just hardware components.
The timing is particularly advantageous as private networks are experiencing unprecedented growth, driven by Industry 4.0 initiatives and the increasing need for secure, dedicated wireless infrastructure. The energy sector's modernization efforts and the utilities' digital transformation create substantial opportunities for specialized connectivity solutions.
Think of this as adding a important software layer to Ceragon's hardware foundation - it's like upgrading from selling car parts to offering complete vehicle solutions with proprietary diagnostic systems. This vertical integration could significantly improve margins and customer stickiness in the long term.
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'
Ceragon is expected to generate
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
"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
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
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.
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Investor Contact:
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FNK IR
646-809-4048
crnt@fnkir.com
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SOURCE Ceragon Networks Ltd.
FAQ
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