Benzinga | Dec 17, 2021 01:13PM EST

RF Industries To Acquire Wireless Telecom's Microlab RF Business Unit For $24.2M

RF Industries Ltd (NASDAQ:RFIL) has agreed to acquire Microlab LLC, the radio frequency components business of Wireless Telecom Group Inc. (NYSE:WTT), for an aggregate of $24.25 million.

* Microlab designs and manufactures RF and Microwave products. It generated unaudited revenue of ~$16 million and adjusted EBITDA of ~$3.7 million for the twelve months ended September 30, 2021.

* RF Industries expects the transaction to be immediately accretive to its stand-alone financials and anticipates realizing meaningful operating synergies upon integrating the Microlab business.

* "With our focus on the significant growth opportunities we expect to see in the small cell and DAS markets, we believe Microlab's products will provide additional scale and opportunity for further revenue growth," said CEO Robert Dawson.

* The company expects to close the deal in the first calendar quarter of 2022.

* RF Industries intends to fund the deal with a combination of cash on hand and borrowings from a credit facility. It held cash and cash equivalents of $12.6 million as of July 31, 2021.

* Price Action: RFIL shares are trading higher by 1.45% at $6.99, WTT higher by 2.64% at $1.84 on the last check Friday.