Aviat Networks has made a strategic move by acquiring 4RF, a leading provider of narrowband radios and LTE/5G routers designed for critical infrastructure wireless networks. The 4RF family of products is tailored for industries such as utilities, oil and gas, mining, public safety, and military, offering top-notch reliability and performance. These solutions cater to a wide range of applications, including Private LTE/5G, smart grid, distribution automation, metering, renewables, SCADA, and telemetry.
The global spending on critical infrastructure networks is on the rise due to the increasing demand for security, automation, and data communications. The availability of spectrum for private networks in various countries is also contributing to this growth trend. Aviat's acquisition of 4RF opens up new market segments, including a $200 million narrowband connectivity segment and the rapidly expanding cellular (LTE/5G) router market projected to reach $2.5 billion by 2027.
With a strong presence in over 300 critical infrastructure customers across 160 countries, 4RF's portfolio complements Aviat's existing wireless access and transport solutions for private networks. The synergy between the two companies is evident, with around 90% of their utility customers being distinct, paving the way for potential cross-selling opportunities in the future.
Pete Smith, President and CEO of Aviat Networks, emphasized the significance of the acquisition, stating, "Operators of mission critical networks around the world rely on Aviat Networks for ultra-reliable and high-performance wireless solutions. Our acquisition of 4RF will further strengthen and expand our product offering for the global industrial wireless access markets, including Private LTE/5G."
Aviat anticipates that the acquisition will have an immediate positive impact on its gross margin and will contribute to adjusted EBITDA and non-GAAP EPS in the first year. The terms of the acquisition have not been disclosed. This strategic move positions Aviat Networks as a key player in the critical infrastructure wireless solutions market, poised to meet the evolving needs of industries worldwide.