Aviat said that it is committed to maintaining the current engineering jobs in Canada as well as the corresponding R&D spend in the country
Wireless transport solutions specialist Aviat Networks said that the completion of the acquisition of Canadian firm Redline Communications, a provider in mission-critical data infrastructure, expands Aviat’s research and development team with a new center of excellence for 5G development in Canada.
The company said that the acquisition will enable the firm to expand its market position in mission-critical and industrial private networks as well as its presence in Canada.
Aviat said that it is committed to maintaining the current engineering jobs in Canada as well as the corresponding R&D spend in the country. The former Redline employees, will continue to develop mission-critical, 5G and industrial private networks products, Aviat said.
Peter Smith, CEO of Aviat Networks, said: “This expansion of our talent will allow us to deliver highly differentiated, 5G-based wireless access solutions for the industrial private networks segment.”
The completion of the acquisition of Redline Communications by Aviat Networks had been announced on July 5.
“We are very pleased to close this transaction so that we will now be able to offer our customers a complete solution, including Private LTE/5G. Redline’s leading portfolio of industrial wireless access solutions will enable Aviat to expand our offering and addressable market globally,” Smith added.
Aviat also said that the Redline common shares were expected to be delisted from the Toronto Stock Exchange on July 7.
Under the terms of the deal, all of the issued and outstanding common shares were acquired by Aviat in exchange for consideration of CAD0.90 ($0.72) per common share, in an all-cash transaction.
Redline Communications designs and manufactures wide-area wireless networks for mission-critical applications in challenging locations. Redline networks are used by Oil & Gas companies onshore and offshore, Mining companies on surface and underground operations, by municipalities to remotely monitor infrastructure, and by specialized telecom service providers to deliver premium services.
Last month, Aviat Networks made public its efforts to buy competitor Ceragon, offering to acquire Ceragon for $2.80 per share in cash and announced its intent to call a special shareholder meeting in an attempt to replace Ceragon board members to get a friendlier reception to its offer. Aviat already owns more than 5% of the company and says that it is Ceragon’s third-largest shareholder.
On July 6, Aviat Networks’ CEO sent a letter to Ceragon’s board of directors due to the lack of response by the latter firm.
“It has been over a week since we made public our acquisition proposal and, as the holder of more than 5% of Ceragon’s outstanding shares, requested an extraordinary general meeting of shareholders for the purposes of removing three current directors and electing five highly qualified and independent new directors to better represent the interests of all Ceragon shareholders (…) While your lack of response is disappointing, it is not surprising, given your refusal for several months to engage constructively with us in negotiations regarding a transaction that would deliver compelling value to shareholders. Your failure to respond over the past week only demonstrates to us, and to our fellow shareholders, that transparency and communication are far from your top priorities,” Smith said.
Aviat said in a previous company statement that it believes that “the combination of Aviat and Ceragon will create a leading global wireless transport specialist that is more efficient and competitive, and better positioned to provide greater innovation and service to their complementary customer bases.”
