Aviat Networks, a provider of wireless transport solutions, has submitted a proposal to acquire Ceragon Networks for $2.80 per share in cash.
Ceragon is yet to accept the offer.

Aviat holds more than 5 percent of Ceragon’s shares as of June 24, 2022, making it Ceragon’s third largest shareholder.

The proposal represents a substantial premium of 34 percent to the closing price of Ceragon shares on June 27, 2022 and a 51 percent premium to the 60-day volume weighted average trading price of Ceragon shares as of June 24, 2022.

“Over the past year, we have sought to negotiate with Ceragon’s Board and management team for a transaction that we are confident would deliver meaningful near- and long-term value for shareholders of both companies,” said Aviat President and CEO Peter Smith.

Aviat expects to realize approximately $35 million of cost synergies from identified SG&A and operational synergies.

By combining the companies’ innovative technologies and building scale, the combined company will be positioned for revenue growth opportunities and benefit from improved purchasing power in the growing wireless transport solutions market, Aviat said in a news statement.

Aviat and Ceragon have complementary product roadmaps, which will enable greater innovation, expand revenue opportunities and enhance addressable market capture. The combined company will have lower R&D costs and greater capabilities to strengthen its technology leadership.