Aviat Networks agreed to acquired NEC's Wireless Transport business for $70 million in cash and shares.
Since 2019, Aviat has served as the channel partner for NEC in North America. The companies said there is little overlap in their customer base.
For Aviat, its geographic breakdown is: 63% in North America, 16% in Africa and Middle East, 16% in LATAM and APAC, and 5% in Europe
For NEC’s wireless transport business unit, the geographic breakdown is: 64% in LATAM and APAC, 15% in Europe, 16% in Africa and Middle East, and 5% in North America.
Aviat said the aquisition brings three benefits:
- an additional $150 million in revenue which will be accretive to adjusted EBITDA, non-GAAP EPS, and free cash flow by the end of the first year;
- enhanced product and intellectual property portfolio;
- a more diversified business, including over 20 Tier 1 service providers worldwide and a leading position in private networks.
"The transaction advances Aviat's strategic goal to create the leading wireless transport specialist and to add meaningful scale to our business," said Pete Smith, CEO of Aviat Networks. "NEC's wireless transport solutions brand, PASOLINK, is recognized by customers around the world for its leading quality and reliability. The addition of NEC's wireless transport business to Aviat's portfolio of high-power, mission critical radios, all-outdoor microwave and multi-band radios, advanced microwave routers and software offerings will create a compelling solution set for any customer. Aviat and NEC possess highly complementary customers and markets and the combination will enable Aviat to pursue select new Tier 1 business. The increased scale and capabilities will enable Aviat to compete even more effectively against the large generalists and fiber backhaul providers."
"As a leader in the field of wireless transport, NEC has accumulated many years of advanced technologies and knowledge by providing solutions to a wide range of customers around the world," said Takayuki Morita, President and CEO, NEC Corporation. "Today, we are confident that this business integration with Aviat will enable customers to be provided with even more valuable solutions."
