ROSH HA'AIN, Israel - Ceragon Networks Ltd. (NASDAQ: NASDAQ:CRNT), a global provider of wireless connectivity solutions with a market capitalization of $380 million, today announced the acquisition of End 2 End Technologies, a U.S. company specializing in systems integration and software for private networks, particularly in the energy and utilities sectors. The transaction, valued at approximately $8.5 million with up to an additional $4.3 million contingent on financial targets for 2025, is expected to close by the end of January 2025. According to InvestingPro data, Ceragon maintains a strong financial health score of 3.21, indicating solid operational performance.
The acquisition is anticipated to be accretive to Ceragon's non-GAAP earnings by the second half of 2025 and is projected to add $15-19 million in incremental revenue for the year, building upon the company's current revenue growth rate of 13.6%. Ceragon aims to use this strategic move to accelerate its private networks business and enhance its market share in North America. InvestingPro analysis reveals 13 additional key insights about Ceragon's financial position and growth prospects, available exclusively to subscribers.
Ceragon CEO Doron Arazi commented on the deal, stating that End 2 End Technologies' system integration capabilities and proprietary network management software platform will enrich Ceragon's offerings and help to increase its footprint in the rapidly growing telecommunications connectivity market.
End 2 End Technologies, with a strong presence in the U.S. market for over a decade, brings approximately 50 employees and expertise in radio frequency communications to Ceragon. The company's proprietary software and service suite are tailored to the energy and utilities markets, aligning with Ceragon's innovation approach.
Greg Crow, co-founder and CEO of End 2 End Technologies, expressed confidence in the cultural fit between the two companies and the potential for successful integration, aligning with Ceragon's growth strategy in private networks.
The acquisition is subject to customary closing conditions. This move marks Ceragon's continued expansion into the private networks domain, leveraging End 2 End Technologies' established brand and technical expertise.
This report is based on a press release statement. For a comprehensive analysis of Ceragon Networks' financial health, growth prospects, and detailed valuation metrics, access the full Pro Research Report available on InvestingPro, which provides in-depth coverage of over 1,400 US equities.
In other recent news, Ceragon Networks has made a significant stride with the acquisition of End 2 End Technologies, aiming to strengthen its position in the private networking space. This move is expected to broaden Ceragon's service portfolio, especially in the evolving North American market, backed by the company's robust financial health. Ceragon Networks' third-quarter revenue in 2024 surged by 17.7% to $102.7 million, primarily driven by the strong demand from India. The company forecasts full-year revenue to range between $390 million and $400 million, indicating a positive market response to its upcoming product launches.
Needham's recent update on Ceragon Networks noted an increase in the price target from $4.50 to $6.00 while maintaining a Buy rating. This change is attributed to the anticipated growth in the lower margin India business in the first half of 2025. Ceragon Networks' strategic focus on private networks, defense, public safety, energy, and government sectors is expected to capitalize on upcoming market opportunities.
These recent developments reflect Ceragon Networks' dedication to growth and improving its product and services suite. The integration of End 2 End Technologies is anticipated to deliver added value to Ceragon's customers by providing a more extensive range of networking solutions tailored to the specific needs of private networks.
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