Aviat Networks announces intent to acquire Redline Communications

Aviat Networks, Inc. the leading expert in wireless transport solutions, and Redline Communications Group, Inc. a leading provider in mission-critical data infrastructure, announced that they have entered into an arrangement agreement (the “Arrangement Agreement”) under which Aviat will acquire all outstanding shares of Redline for CAD$0.90 per common share (approximately USD$0.71 per share), in an all-cash transaction (the “Transaction”) valued at approximately CAD $16.2 million (approximately USD$12.9 million). Aviat expects to fully fund the acquisition from cash on hand. Subject to customary closing conditions and necessary regulatory approvals, the transaction is expected to close within four months.

Commenting on the Transaction, Pete Smith, Aviat CEO, said, “This is an exciting opportunity for both Aviat and Redline. The acquisition expands Aviat’s share in private networks by adding Redline’s wireless network access capabilities in industrial PTP/PTMP and licensed Private LTE and 5G to Aviat’s existing wireless transport backhaul solutions. Redline products will leverage Aviat’s sales and marketing presence for broader reach. Likewise, Aviat will benefit from Redline’s presence in the Oil & Gas, and Transportation verticals.”

Smith continued, “We expect this deal to be immediately accretive to Aviat’s gross margin %, Adjusted EBITDA, non-GAAP EPS, and Free Cash Flow all in the first year. We look forward to finalizing this transaction which we believe will generate significant value for our shareholders.”

Richard Yoon, President and CEO, Redline added that, “Aviat is a great partner for Redline. We look forward to leveraging our portfolio in conjunction with Aviat’s global scale.”

This Transaction is expected to provide both Aviat and Redline customers with a broader, more integrated portfolio of wireless access and transport solutions and reinforces Aviat’s roadmap and commitment to the future of Private Networks as the environment evolves to 5G and beyond.

CT Bureau