Wireless Telecom Group acquires CommAgility for 18.8M

Parsippany-based Wireless Telecom Group Inc., a wireless communications solution, announced Tuesday it has acquired CommAgility Ltd. for $18.75 million.Parsippany-based Wireless Telecom Group Inc., a wireless communications solution, announced Tuesday it has acquired CommAgility Ltd. for $18.75 million.

CommAgility, headquartered in England, is a developer of embedded signal processing and RF modules, LTE software for 4G and 5G mobile networks, and related applications.

The initial purchase price for CommAgility was $12.5 million in cash and $6.25 million of Wireless Telecom stock.

“The transaction with CommAgility is directly aligned with our strategy to add transformational growth opportunities to the company and enhance our scale,” Tim Whelan, Wireless Telecom CEO, said in a statement. “The combination creates a powerful expansion of the value proposition of our solution set by adding software centric solutions and a combined hardware and software skill set which enhances our product design capability to address large market opportunities. CommAgility also brings world-class engineering talent focused on LTE wireless communications that will allow us to accelerate our innovation to networking trends driven by 5G deployment and IoT development.”

CommAgility is expected to add approximately $10 million of annual revenue to the new combined business. The acquisition also will add more than 30 engineers.

“We are excited and believe that Wireless Telecom is the ideal partner to accelerate our growth initiatives to build upon our successful 10-year history,” Edward Young, co-founder and managing director, CommAgility, said in a statement. “We share many of the same values including our dedication to innovation and commitment to customer excellence. We both have deep technical skills and incredible industry talent which together, strengthen our market leadership and create value for our customers, employees and shareholders.”

B. Riley & Co. LLP will serve as the exclusive financial advisor to Wireless Telecom and Bryan Cave LLP will serve as legal counsel. Convex Capital will serve as financial advisor and Rosenblatt LLP will serve as legal counsel to CommAgility.