Ceragon Acquires Wireless Provider Siklu
Siklu is one of the few remaining wireless equipment providers focusing on the physical security market. Now, it has been acquired by Ceragon, a publicly traded manufacturer. What is their plans?
In this report, based on an interview with Ceragon's President of North America Ronen Rotstein, and Siklu's CRO, Alex Doorduyn, we examine the companies, the acquisition, and future plans.
Executive *******
***** *** ********* **** *** ******** growing *** ********** ******* ************, **** view **** *********** ** ************* *** spurring ********* ******. **** **** ** leverage ***** ******* ********* *** ************ to ****** ***** ***** ** ***** America, ********* ***** *******'* ************ ******** and ****** *** ** ******* *********' wireless *******.
************, **** **** ** ********** ** the ******$**.** ******* ********* ******, ******, *** Deployment (****) ********* ** ********** ***** ********* ** US ****** *** *********** *** ************** enhancements. *** ********* **** ** **** are "**** **** ********** *** **** market."
*******, ** *** ******** **** *** Siklu, ** *** ******** *** ************* less **** *** ~$** ******* ** raised ***** ** *** ******* ** 2007, ** ** ********** ***** ** $13-15 *******. ******* ****** *** * ~$150 ******* ****** **************, **** **** half ** *** ****** *******.
Ceragon **********, *********
********* * ****** ******** ******** ******** founded ** **** *** ************* ** Israel. ******* ******** *****-**-***** ******** ******** solutions *** ************-******* ******** ************ ******* design, **********, ***********, *** ********** ** wireless ********.
******* ********* ****** ** **** **:
**'** * ****** ******* **** * run **** ** ***** $*** ******* a **** **** ***** **** ****** globally. * ***** *** ***** ************ display *** ******, ** **** ******* all *** *** **** ********* ** the ** *** ********** ** *** middle **** ** *** **'** ******* in *** **********. *** ** ***** ourselves **** ******* **** **********.
Siklu **********
******* **** * ******** ********* ********, founded ** **** *** ************* ** Israel, *** *** ********* ***** ***** the ***********. ***** ******** ******** ****** solutions, ********* ** *** ***** *** 70/80GHz ***********, ********* *****-**-*****, *****-**-*****-*****, *** the *******'* ****** ********** ****, ********* *********.
Siklu's ***-**-*-*** ******-**** *****-**-***** ****
*****'* *****-**-***** (*** ***) "****-**-*-***" *** costs $*,*** **** *** *** ****, but *** ******** ********** *** ****** $3,000 * ****, ** ******** ****:
*** ****** **** ***** ** ***** link *** ******** ****** ******** **** around $*,*** * ****, *** ****, now **'** ******* * ***** ** point *** ** * *** **** for $*,***
Siklu: ~**-**% ******* **** ******** / ********** ** ***** *******
***** **** **** **** ~**-**% ** its ******* **** ***** ******* ** from ******** ******** ** ********** *********, and ~**-**% ** **** ******** ****.
Acquisition ****** ** "*************" **** ******* *** *****
**** ********* ****** **** *** *********** is ****** ** ************* ** *******'* North ******** *********, ********, *******:
** **'* ************* ** ***** ** the ******* **** ** *****, *** it's ************* *** *** **** **** in ***** ** *** ******* *********. Both *** *****-**-********** **** ******* *****'* have *** *** ********* ** *** lower **** ***** ******** ***** ** something **** ***** *****'* ****. ** it's *************, ** ***** ** *** portfolio.
Ceragon's **** ****** *****, ***** ****** ********* / ********
************, ******* ******** ****** ** * different ******** **** ***** *** *** served ****** ****** ****** *********/********, ** the *******'* ***** ******** *********, ********, said:
******* *********** ** *** ******** ******** space, ** ******* ** ******* ** Siklu. *** ******* ** * ********* spectrum **** [*****] *** *** **** part *** ******* ****** ****** ****** carriers. ** ***'** **&*'*, *******'* *** T-Mobile's ** *** *****.
Ceragon ****** ** ****** **** ********** *********
******* *** **** ** **** ****** for ****** ** *****, ******** ** carriers, *** **** ** ****** **** additional *********, **** *** *********** ***** a **** ** **** ********, ** Rotstein *****:
**'** **** ** **** ****** *** almost ** ***** *** *** **** been ******* ****** *** ******* ********* globally. ***, *** *** ** *** things ** **** ** **** ************ more ******* ** *** ******* ******, and **** ** *** ******** ***** is ********* **** **'** **'** ****** about ** ********** *** ***** **** additional ********* **** **** ********* *** cases, *** ********, **** ****** ** part ** ****.
Siklu "******" ****** ** ******* ******* "*****'* ***"
***** "******" ****** ** ********** ******* / ********* ******* ****'* ****, **** the "****-***" ** *******, ********* *** capabilities ** *** ******* **********, ** Rotstein ****:
** ** ******* ***** ****** ****** to ***** ******* **** ** ****** haven't ***. **** ******* ** ****'* have *** ***** ******* ********* *** know *** ** ******* **** **** enable ** ** **** *** ******* portfolio *******.
Customers *** **** ****** ** "**** ***" ** *********
**** *** ***** *******'* ***********, ********* will *** **** ****** ** *** full *** ** ********* / ******** from **** ******* *** *****, ** Rotstein ****:
**** *** ***** *******'* ***********, * would ***, **'* ***** ****** **** that ** **** *** ********** ********* access ** *** **** *** ** solutions.
******** ********* ******** ***** *** ********* portfolio *** ********** ************:
*** *******, *** ***** ********* **** have ****** ** * ******* ********* of ********* ******** **** ******* ****** reach, ***** ***** *** ****** *****, in ***** ** *** ******** ******.
*********, **** *** ***** ***********, **** highlight *** ****** ***** ** ******** and *** *********** *******’* ********* *******, as ******** *******:
*** *** ********* ** ******** *********** in ********** ** *** ****, **** gives ***** **** ****** ** * longer ***** ** ********, **** *** Ceragon ******** *** ********** ** ****'** operating ** *,**,** *** ** ********* in *** **. ** ***** ********* gives ** ****** ****** ********* *** our ***.
Ceragon "******" ****** ***, ************ ********
******* “******” ************ ******* ************ **** as ******* ********, ****** **********, *** a ****** ***, ***** ***** *** not ********** ******* ** ***** *********, as ******** ****:
**'** *** ********** ******** ************, ****, Ceragon *** * ****** *** **** we *** ***, ***** ** * think, ********** ******** *** **** ** the *** ***** ********* *** ************ security, *** * ***'* ***** **** is ********* ****, *** ****, **** [Siklu's] ******** *** *** *********** ********* to ***** *** *****.
******** ******* ** ***** ********** ************ Ceragon ********, ********* ***************, ************ *** health **********:
*** ** *** ******* * *******, and **'* *** *****, ******** ***** needs ** ******** ** *** ******** 5,7,10 ***** **** **'* ** *********, which ***** **** *** **** ** monitor *** ****** ** *** *******, you **** ** *** ** ** and **** ** ****** *** **** to ************, *** ** ** *** so *****.
*** ***** *** ******** *******'* ************ services ** ******* / ****** ********, as *** ***, ********, ****:
*** **** *** ** ******* ** as * ********, *** **** ******* has ************ ********, **** *** ******** go ** ***** *** ******** ******, install ***** ***** ***** ***** **.
Siklu's **** ** **. ********
****** ******** ********, *** **** ****** wireless ******** ** ********, ** *** wireless ******** **** ** ******* **** them.
******** ** ********, *** "**** *****" that **** ***** ***** **** ***** wireless ************* ** *** ******** ****, including ***/**** *****, **** *******, ****-***** support *** **** *******, ** ******** adds:
** **** ***** *** **** **** sets ** ***** **** ***** **** wireless ************* **** ********, *** *******, which [******** **] **** [** *] much ***** ***** *****, [**** **** Siklu ***** **] *** ****** ** the ******* ****, ** *** *** sales **** ***** **** ******, ** do **** ******* ** ** **** sales ******* ********* *******.
******** **** ********** *** ******* *********, including ****, ******, ********, ***., *** product ********, **** ** ******* *** from * *****-** ******:
**** *** ********* ******** **** **** working **** *** ***** ** ****, Hanwha, ********, *******, *********, *** ******** that **'** ***** ** *** ******* specifically *** *** ******** ****** **** providing *** ***** ** ******* ******** from *** ***** ***** ** ******, they ***'* **** * ******.
*****'* ******** *** **** *** ********** use, ** "******* *****", *** *** TAA *********, ******* ******** ******** *** not, ** ******** ****:
**'** ********** **** ** *** ********** side, ******* *****, ******, **** ** a ******** ****, *** ****, **** it's * *** *********, **'** **'** made ** ******, **** *** [********] made ** *****
****: **** ******** ******** *** **** in ******* *** ******, ****** **** historically **** **** **** **** ** the ***.
******, ***** **** **** ****-******** *** critical ************** *********** ** **** ** high ** ***-*********** **** ***********, ** Doorduyn ****:
** ** **** * *** ** high ********, ******** ************** **** *********** you ****, **** *********** ****, ***** in ******, ******, ** *** ****** those *** **** ** *** *******.
***** ***** ********** *** ******** **. Ubiquiti, *** ***** ************ **** ****** be *** ***** ** ********'* **** market ** ******* ***** ** *******'* use.
Siklu ***** *******
***** **** **** *** ***** ** not ***** ****, *** *** ******* is ***** ***** "**********.”
Ceragon *** *****'* ** / ***** ******** ****** ********
***** ******* **** **** **** **** 1,000 ********* ********, *** ******* **** has ~** ** ***** ********* ** North *******, *** ** ***** *** mostly ** *** ***** *** ******** (professional ********) **** ** *******, ** Rotstein ****:
***** ******* ************ **'** ******* ***** 60 *** ****'*, *** ****'* **** on *** ***** *** ******** ************* [including *** ************ ********]
*** ** *** ***** ******* *** the ******* ******* ******* **** ** and ********** **** *** ********* *********** expanding *******'* ****** *****, ** ******** adds:
*** ** *** ***** ******* ** general *** ** *** *** ******* growing ****** **** ** ****. **** because ** ** ***** ** ***** going ******, ** ***** *** *** customers. ** ****** *** **** **** our ********* **** ***** *** ********* that *** ******* **** ****** **** acquisition, ** **** **** ** ******* more *********** ** ****** *** *** market ***** ** ***** *********
***** ***** ******** ~** ********* ********, the ******* **** **** **** **** about ** ****** ** ***** ******* but ***** **** **** * *** "open *****."
Sees ** ** ****** ******, ****** ** ********** ** $**.** ******* **** *******
***** **** ********* **** * ********** low ********* ** ***** ******* (~** employees ** ********), *** ********* *** the ** ** * ****** ****** for *** ***** ******* **** *** "attention" ** ********* **************, ** *** North ******** ********* ******** ********:
**'** ****** *** ** ** **** relevant *** ** * ****** ****** for *** ***** ******* **** ******* there ** ** **** ********* ** upgrading **************.
************, ~$**.** ******* ** ********** ***** have **** ********* ** ******* ************** which *** ***** ******* ***** ****** as "**** **** **********".
******* ***** ** *** ***** ** well ** ** *** ** ************ is *** **** ******* *****'* ******** coming ***, $** ******* ***** **** that **************, *** **** ** ***** to ** * **** ****** ************ for ******** *********, ******, ** **** onwards.
Ceragon's ******** - *** ******, *********, *** ******
***** *** ******* ******* *** **** annual ******* ** ** ~$*** ******* (as ******** **** ****), *** ********* market *** **~$*** ******* ** ~**% of *** *******'* ******** ****** ******* of ~$*** *******:
******* ******** ******* ~***+ **** ********* than ******** ********, ******** **** ***** headcount *** ******** **** **** *** last *** *****, *** ******** ****:
******* **** **** * ******* **** the **** *** *****, ****** *** timing ** *** ******* ******** **** the ******** ** ***** ********* ******** them:
** **** *** ******* ******* **********, so ** ****** ****** ***** ***** specific **********.
Siklu's ********
***** *** ******** "*** ** ********** value ** $**-** *******", ************* **** than *** ~$** ******* **** ****** and **** ** ******** ***** **** revenue ** **.
******* ********** ********* ******* **** **** instead ** ********** *****'* ****** **** revenue ** ******** **** (***** *** year ** ****** ****). *** ******** stated, "******* ** ******** ** ******** approximately $**-$** ******* ** *********** **** revenue **** **** ***********." *** ******* declined ** ********* ** ****** ***** revenue, *** *** ********** ** **** typically, **** ********* ******* ****** **** revenue, ** ** ******* **** **** to ********* *** ****** **** ****. Based ** ***** ********, ** ****** 2023 ******* ** ** ***** **** $25 *******.
*******, *** *******'* ********* *** **** down **** *** **** *** ***** and **** **** *** **** ****, as ******** **** *****:
*******
** ** *** **** ****** ***** the ********* ** *********** ******* ***** future. *******, ***** *****'* *** *** the ****** **** ***** *************, ***** acquired *** ********* **** * ****** provider ** ********** ******** ******** ** continuing ***** ****** **********.
******:
*****'* ***, **** ********,*** ********(******* *****) ***** * ***** *** a **** ** ***** ** ******* (as ********* ** *** ******) **** the *******, ** ** ****** ** a ******** **** ** "****** ** a *** *******" ** * ********* of * **** *******:
****:
*'* *** *****'* ******* *********** ** Cambium ******* *** ****** ****** **** Ubiquiti; ** ****** **** ** ***** that *** ***** **** ******* *** Radwin ***** **** ***** **** ******** their ***** ******** ****** (***) ********* and ********* * ********** ** ******* less ********* ********** ******** ** ******* forces.
******* *** ****, ******* ******* ***** labels *******'* **-** *** **-** ***** of ******** *** ******** **** *** 820 *** *** ***.