Ceragon Networks Ltd. CRNT recently announced that it has entered into a definitive agreement to acquire End 2 End Technologies, LLC, a leading systems integration and software development company in the United States. The transaction is valued at approximately $8.5 million, with an additional potential payment of up to $4.3 million contingent on the company meeting specific financial targets in 2025, to be paid primarily in 2026. The acquisition is expected to be accretive to Ceragon’s non-GAAP earnings by the second half of this year.

CRNT’s Strategic Acquisition to Expand Footprint

Headquartered in Arizona, End 2 End Technologies has established a strong reputation over the past decade, providing its services to numerous clients across the energy and utilities verticals. With a workforce of approximately 50 employees, the company is recognized for its expertise in radio frequency communications, covering both broadband and narrowband solutions, as well as its support for industrial applications. The company also emphasizes the development of proprietary software, which aligns with Ceragon's commitment to innovation. 

The transaction, subject to customary closing conditions, is expected to close by the end of this month. Upon completion, Ceragon will have access to End 2 End Technologies’ experienced team and strong leadership, along with their state-of-the-art network management software platform, which is being sold in the energy market globally. The deal will help Ceragon meet the growing demand for private network solutions in North America. This will not only help the prominent wireless connectivity provider expand its market share but also deepen its involvement in the energy and utilities sectors, where the need for advanced connectivity solutions is paramount.

Will CRNT Stock Benefit From This Acquisition?

Management anticipates the acquisition to generate an additional $15-19 million in revenues in 2025. The deal is also expected to be accretive to Ceragon’s non-GAAP earnings in the second half of 2025, supporting its growth objectives and enhancing its position in the expanding telecommunications market. This improved financial performance is likely to propel the stock upward.

CRNT’s Stock Price Performance

Shares of Ceragon have gained 82.7% over the past year against the industry’s 11.6% decline.

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CRNT’s Zacks Rank and Stocks to Consider

Ceragon currently carries a Zacks Rank #3 (Hold).
 
Some better-ranked stocks in the broader industry have been discussed below:

Ubiquiti Inc. UI presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The company’s highly flexible global business model adapts to changing market dynamics, enabling it to overcome challenges while maximizing growth. Its effective management of a strong global network of more than 100 distributors and master resellers improved its visibility for future demand and inventory management techniques. In the last reported quarter, Ubiquiti delivered an earnings surprise of 20.9%.
 
InterDigital, Inc. IDCC sports a Zacks Rank of 1 at present. It has a long-term growth expectation of 17.44%.

IDCC pioneered advanced mobile technologies that enable wireless communications and capabilities. The company designs and develops various advanced technology solutions for digital cellular, wireless 3G, 4G and IEEE 802-related products and networks.

Keysight Technologies, Inc. KEYS sports a Zacks Rank of 1 at present. In the last reported quarter, it delivered an earnings surprise of 5.10%. Keysight is expected to benefit from the growing proliferation of electronic content in vehicles, momentum in space and satellite applications and rising adoption of driver-assistance systems globally.

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InterDigital, Inc. (IDCC) : Free Stock Analysis Report

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Ubiquiti Inc. (UI) : Free Stock Analysis Report

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