Mobix Labs Completes Acquisition of RaGE Systems

Rhea-AI Summary

Mobix Labs (Nasdaq: MOBX) has finalized the acquisition of RaGE Systems, a Massachusetts-based leader in radio frequency design and manufacturing services. This move is expected to enhance Mobix's revenue and earnings, as well as accelerate product development and innovation. RaGE Systems specializes in products for 5G communications, mmWave imaging, and Software Defined Radio systems, targeting commercial, industrial, defense, and aerospace sectors. The acquisition aims to spur increased innovation, expand Mobix’s customer base, and broaden market reach.

CEOs from both companies highlighted the strategic benefits, with Mobix's leadership team set to support RaGE Systems' future endeavors. The acquisition reinforces Mobix Labs' global acquisition strategy, aiming for growth and a stronger market presence.

Positive

• Expected increase in revenue and earnings for Mobix Labs.
• Acceleration in product development and innovation.
• Expansion of customer base and market reach.
• Enhanced capabilities in 5G communications, mmWave imaging, and Software Defined Radio systems.
• Robust customer support and cost-effective manufacturing from RaGE Systems.
• Strategic fit with Mobix Labs' global acquisition strategy.

Negative

• Potential risks associated with integration challenges.
• Financial burden due to acquisition costs.
• Uncertainty in achieving projected revenue and earnings growth.
• Possible dilution of focus on Mobix Labs' existing product lines.

Insights

Financial Analyst

The acquisition of RaGE Systems by Mobix Labs is a significant event for investors to consider. From a financial perspective, acquisitions can often lead to increased revenue and earnings, as stated by the management. Investors should note that Mobix Labs is a fabless semiconductor company, meaning it designs semiconductors but outsources their fabrication. This acquisition will likely give Mobix Labs access to RaGE Systems’ established client base in the commercial, industrial, defense and aerospace markets. The synergies expected from this acquisition could lead to increased sales and potentially higher profit margins due to economies of scale.

However, integrating an acquired company can sometimes come with hidden costs and challenges. Investors should watch for any signs of integration difficulties, such as missed earnings targets or increased operational costs. Additionally, it's important to evaluate whether the projected revenue and earnings growth align with Mobix Labs' historical performance and industry benchmarks.

Tech Expert

From a technology standpoint, RaGE Systems specializes in 5G communications, mmWave imaging and Software Defined Radio systems. These areas are pivotal for the future of connectivity and have significant growth potential. For Mobix Labs, integrating RaGE Systems' technology could enhance its product development capabilities, especially in next-generation wireless solutions. Investors should consider the potential for Mobix Labs to innovate and capture more market share in these high-tech fields.

Technical integration is a vital aspect to monitor. If Mobix Labs effectively leverages RaGE Systems' expertise in radio frequency joint design and manufacturing, it could lead to the creation of cutting-edge products that meet evolving market demands. However, the pace of technological advancements and competition in the semiconductor space means Mobix Labs must continuously innovate to maintain its competitive edge.

Market Research Analyst

Looking at market dynamics, the acquisition positions Mobix Labs to broaden its market presence across multiple sectors, including commercial, industrial, defense and aerospace. These sectors each have unique growth trajectories and market demands. By diversifying its market reach, Mobix Labs can mitigate risks associated with market fluctuations in any single sector.

Investors should consider the growth potential of these markets. The defense and aerospace sectors, in particular, often have long product development cycles but offer substantial revenue opportunities once products are developed and contracts are secured. Additionally, the commercial and industrial sectors demand rapid innovation and cost-effective solutions, areas where RaGE Systems has shown strength. Market expansion could provide a more stable revenue stream and reduce earnings volatility.

- Management believes that this acquisition will be accretive, increasing revenue & earnings while accelerating product development and innovation

IRVINE, Calif.--(BUSINESS WIRE)-- Mobix Labs, Inc. (Nasdaq: MOBX) (“Mobix Labs” or the “Company”), a fabless semiconductor company developing disruptive connectivity solutions that span from wired to next-generation wireless solutions, today announced it has completed its acquisition of RaGE Systems, Inc. (“RaGE Systems”), a leader in radio frequency joint design and manufacturing services based in Massachusetts.

RaGE Systems specializes in developing products for 5G communications, mmWave imaging, and Software Defined Radio systems targeting commercial, industrial, defense, and aerospace sectors. The RaGE Systems team is recognized for their groundbreaking technology, robust customer support, and cost-effective manufacturing & test capabilities, contributing to their steady growth.

“We are excited to further our collaboration with the RaGE Systems team on developing breakthrough wireless communications systems and integrated circuits. We believe the acquisition will spur increased innovation, extend our customer base, broaden the markets we serve, and accelerate our ability to extend our industry-leading technology portfolio. This will increase the pace of developing additional next-generation wireless products for our customers,” said Fabian Battaglia, CEO of Mobix Labs.

Russell Cyr, CEO of RaGE Systems, commented, “The acquisition by Mobix Labs is a key step in our growth and support for all our customers. The management team at Mobix Labs and their Board of Directors bring a mature, world-class leadership team that RaGE Systems can lean upon in our future endeavors. We look forward to expanding our existing customers and products and leveraging the IP and technology across the entire Mobix Labs portfolio of product lines.”

“Completing the RaGE Systems transaction is another key milestone in our growth and again affirms the strength of our global acquisition strategy. We believe that this strategic acquisition will increase Mobix Labs’ revenue and earnings, while broadening our market presence,” said Keyvan Samini, President and CFO of Mobix Labs.

About Mobix Labs, Inc.

Based in Irvine, California, Mobix Labs is a fabless semiconductor company delivering mmWave 5G and C-Band wireless solutions and delivering connectivity and filtering products for next-generation communication systems supporting the aerospace, military, and high-reliability markets. The Company’s True Xero active optical cables are designed to meet customer needs for high-quality active optical cable solutions at an affordable price. The Company’s electromagnetic filtering products, which were acquired in the EMI Solutions, Inc. (“EMI”) acquisition, are used in military and aerospace applications. These technologies are designed for large and rapidly growing markets where there are increasing demands for higher-performance communication and filtering systems that utilize an expanding mix of both wireless and connectivity technologies. More information on the company can be found by visiting mobixlabs.com or by following us on X @MobixLabsInc and LinkedIn.

About RaGE Systems, Inc.

RaGE Systems, Inc. is a RF-JDM focused on high-value, medium volume electronics for a variety of industries. Based in Massachusetts, the company specializes in RF design, development, manufacturing and automated test of RFICs, modules and subsystems. RaGE Systems has developed hardware, RFICs, embedded firmware and software products for 2/3/4/5G RFFE and O-RAN systems, Software Defined Radio, MMW imaging and threat detection, sensor fusion and AI, micro-miniaturized electronics for smart munitions and advanced HW and FW for specialized receivers. More information can be found at their website RaGEsystems.com or you can follow them on LinkedIn.

Forward-Looking Statements

This press release contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. Statements that are not historical facts, including statements about capturing additional opportunities in the future, the expected benefits from the acquisition of RaGE Systems, including the impact it may have on product innovation, customer base expansion and market share presence and the impact from the RaGE Acquisition on Mobix Labs’ business, including on revenue and earnings per share, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, and a number of factors could cause actual results to differ materially from those contained in any forward-looking statement, such as Mobix Labs’ ability to deliver parts or to develop technology in connection with the systems provided by RaGE Systems to its customers; the risk that the parties may be unable to achieve the expected strategic, financial and other benefits of the acquisition, including the realization of expected synergies, within the expected time-frames or at all and the risk that the businesses will not be integrated successfully or that integration may be more difficult, time-consuming or costly than expected. In some cases, forward-looking statements can be identified by words or phrases such as “may,” “will,” “expect,” “anticipate,” “target,” “aim,” “estimate,” “intend,” “plan,” “believe,” “potential,” “continue,” “is/are likely to” or other similar expressions. All information provided in this press release is as of the date of this press release, and Mobix Labs undertakes no duty to update such information, except as required under applicable law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240521366943/en/

Media Contact:

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Investor Contact:

Lori Barker, The Blueshirt Group

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Source: Mobix Labs, Inc.

FAQ

What is the significance of Mobix Labs' acquisition of RaGE Systems?

The acquisition is expected to increase Mobix Labs' revenue and earnings, accelerate product development, and expand their market presence.

How will the acquisition of RaGE Systems affect Mobix Labs' product development?

The acquisition will accelerate the development of next-generation wireless products and integrate RaGE Systems' expertise in 5G communications and mmWave imaging.

What sectors does RaGE Systems specialize in?

RaGE Systems specializes in commercial, industrial, defense, and aerospace sectors with a focus on 5G communications, mmWave imaging, and Software Defined Radio systems.

What are the strategic benefits of the acquisition for Mobix Labs?

The acquisition aims to spur innovation, increase the customer base, broaden market reach, and enhance product development capabilities.

What are the financial expectations from the acquisition of RaGE Systems by Mobix Labs?

The acquisition is expected to be accretive, positively impacting Mobix Labs' revenue and earnings.

What potential risks are associated with the acquisition of RaGE Systems?

Potential risks include integration challenges, financial burdens from acquisition costs, and uncertainties in achieving projected growth.