Aviat Networks, Inc., the leading expert in wireless transport and access solutions, announced the completion of its acquisition of the Wireless Transport Business of NEC Corporation. The completion of this acquisition significantly increases the scale of Aviat Networks, enhances the Company’s product portfolio with a greater capability to innovate, and creates a more diversified business.
“We are pleased to close this transaction and further solidify our position as the leading wireless transport specialist company,” said Pete Smith, CEO of Aviat Networks. “Now with the two businesses’ products and services together, Aviat will be able to offer a superior solution to its combined customers around the world.”
Mr. Smith continued, “We are eager to bring our best-in-class services and operations to the customers joining Aviat. We are committed to our goal of providing a better customer experience for all customers as a result of this transaction. Additionally, we welcome the employees joining Aviat from NEC. We look forward to building a great business together.”
Aviat will include the acquired Wireless Transport Business in updated fiscal year 2024 guidance which will be provided in Aviat’s fiscal 2024 second quarter earnings call. The acquired business will impact only the last month of Aviat’s fiscal 2024 second quarter, which will be reflected in Aviat’s next earnings report.
Aviat Networks previously announced its entry into a definitive agreement to purchase the assets of NEC’s Wireless Transport Business on May 9, 2023. Updates to the terms of the agreement, along with the full details of the final Purchase Agreement, have been filed with the SEC today. The final purchase price of the transaction was $65.5 million with $42.1 million in cash consideration and $23.4 million in stock consideration. Aviat is drawing on its previously announced committed debt financing to fund the cash portion of the transaction. The price per share of the stock consideration remains fixed at $31.74 per share based on Aviat’s 30-day volume weighted average price prior to the May 9, 2023 definitive agreement. The reduction in purchase price is a result of a portion of the acquired business that could not be transferred as originally planned and accounts for approximately 7% of the previously disclosed $150 million annual run rate revenue expected from the acquired business.
SOURCE : PRNewswire