Siklu video
Ceragon Networks Ltd., a solutions provider of 5G wireless transport, is buying Siklu, an Israeli startup that provides multi-Gigabit “wireless fiber” connectivity in urban, suburban and rural areas, for an enterprise value of $13-15 million. At the same time, Israeli startup ADOR Diagnostics, a disruptive molecular diagnostics company, raised $7.5 million in a Series B round of funding.
BATM Advanced Communications Limited invested $3.5 million of the money which will increase its share of Ador to 43.6%.
Founded in 2016, ADOR Diagnostics is an innovative IVD company that specializes in the development of molecular biology technology. ADOR boasts that it sets a new standard by revolutionizing the way laboratories worldwide diagnose infectious diseases with multiplex, sample-to-answer, fully automated systems that deliver accurate results rapidly.
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As for the Siklu acquisition, as consideration to Siklu’s shareholders, Ceragon will issue approximately 1.5 million ordinary shares. Ceragon is expected to assume financial liabilities of approximately $10-12 million, of which approximately $2.5 million are classified as long-term debt.
Ceragon said that the firm expects to generate approximately $25-$29 million in incremental 2024 revenue from this acquisition. The acquisition is expected to be accretive to the consolidated gross margins of Ceragon as Siklu’s margins are at levels significantly higher than Ceragon’s historical margins. Ceragon management expects the combination to improve Siklu’s results by leveraging Ceragon’s working capital management capabilities, as well as expanded profitability following synergies.
Founded in 2008, Siklu delivers multi-gigabit wireless fiber connectivity in urban, suburban and rural areas. Operating in the secure mmWave bands, Siklu’s wireless solutions are used by leading service providers and system integrators to provide 5G Gigabit Wireless Access services. Thousands of carrier-grade systems worldwide are delivering fast interference-free performance and benefiting a true comprehensive end-to-end solution from planning to deployment
Ceragon Networks, a publicly traded company on the NASDAQ, is the global innovator and leading solutions provider of 5G wireless transport. We help operators and other service providers worldwide increase operational efficiency and enhance end customers’ quality of experience with innovative wireless backhaul and fronthaul solutions. Our customers include service providers, public safety organizations, government agencies and utility companies, which use our solutions to deliver 5G & 4G broadband wireless connectivity, mission-critical multimedia services, stabilized communications, and other applications at high reliability and speed.
Doron Arazi, Ceragon CEO, said “We expect this combination to accelerate our growth strategy, by improving our key financial metrics and reducing customer concentration in the short and long run. We have identified near-term opportunities to bring Siklu products to regions and customers where Ceragon has an established presence, and, for the longer term, to combine Ceragon products to create a more comprehensive offering primarily to private networks and small service providers in general, and leverage Siklu’s millimeter-wave leadership position in North America to increase our presence in this key market in particular.”
Mr. Ronen Ben Hamou, Siklu’s CEO, added, “We see Ceragon as the perfect partner for Siklu, in both technology, market, and cultural fit.”
