Ceragon Networks is looking to buy Siklu for $13 million to $15 million
Israeli 5G wireless transport provider Ceragon Networks is looking to acquire connectivity solutions provider Siklu for an enterprise value of $13 million to $15 million.
In a press statement, Ceragon CEO Doron Arazi said the pairing will “accelerate [the company’s] growth strategy, by improving [its] key financial metrics and reducing customer concentration in the short and long run.”
The short-term plan will see Ceragon bring Siklu products to the regions and customers the company has already established, with the goal to eventually combine Ceragon and Siklu products to more directly target private networks and small service providers. Arazi also shared that the company is looking to leverage Siklu’s millimeter-wave (mmWave) presence in North America to build up its own positioning in this market.
In 2021, Siklu’s mmWavereach in the U.S. expanded considerably with extension of its distribution agreement with North Carolina-based DoubleRadius. Alex Doorduyn, Siklu’s GM Americas at the time, but now chief revenue officer, said that working DoubleRadius — and other partners — has allowed Siklu to achieve the “largest market share of E-band mmWave equipment in the U.S.”
Of Ceragon’s pending acquisition of Siklu, Arazi continued: “In addition to increasing our market share in the millimeter wave bands, which is anticipated to be the growth segment within wireless transport market in the coming years, this acquisition is expected to provide us with an entry point to PtMP technology in general and Fixed Wireless Access in particular.”
Ceragon said it expects $25 million to $29 million in incremental revenue in 2024 from the purchase of Siklu, which is expected to close by the end of the year and remains subject to customary closing conditions.
