Ceragon Networks Ltd. (NASDAQ:CRNT), the global innovator and leading solutions provider of 5G wireless transport, today announced that it has completed the previously announced acquisition of Siklu, a provider of multi-Gigabit "wireless fiber" connectivity in urban, suburban and rural areas. The acquisition creates a more comprehensive, end-to-end offering ideally targeted to small service providers and private networks around the world. In particular, the combination gives Ceragon immediate access to Siklu's established leadership in the millimeter-wave market in North America including its Fixed Wireless Access offering.

Ceragon expects the acquisition will increase its 2024 revenue by approximately $25-$29 million. The acquisition is expected to be accretive to the consolidated gross margins of Ceragon as Siklu's margins are at levels significantly higher than Ceragon's historical margins. Ceragon management expects the combination to improve Siklu's results by leveraging Ceragon's working capital management capabilities, as well as expanded profitability following synergies. Inclusive of these business improvements, management anticipates the transaction to be accretive to non-GAAP earnings by the second half of 2024. Ceragon expects to include the Siklu acquisition in its 2024 guidance, to be provided, in combination with the release of Ceragon's fourth quarter results, in early 2024.

As part of this transaction, Ceragon expanded its total loan credit facility by $5 million to $77 million in total, and Siklu's primary lender joined Ceragon's lending consortium.