May 9, 2023
A New Era of Growth and Innovation: Aviat Networks Acquires NEC’s Wireless Transport Business
Have you heard the exciting news? Aviat and NEC have entered into a definitive agreement for NEC to transfer its wireless transport business to Aviat. This move marks a new era of growth and innovation for Aviat. NEC’s wireless transport solutions brand, PASOLINK, is recognized by customers around the world for its leading quality and reliability. The company’s end-markets and product portfolio are highly complementary to Aviat’s wireless transport portfolio. The new and dynamic company combination will create a leading global wireless transport specialist with increased scale and capabilities to effectively compete against the large generalists in the industry.
Furthermore, Aviat anticipates the business will contribute approximately $150 million in annual revenue, which will significantly increase the scale and reach of Aviat’s global business. The combined business will service over 20 Tier 1 service providers worldwide.
Aviat and NEC share a rich history of working together. In 2019, Aviat announced it had become the exclusive distributor of microwave radio for NEC in North America. Since then, the relationship has flourished, and due to highly complementary customers and markets, this exciting new combination will create not only the largest global wireless transport specialist, but the third largest microwave vendor overall1. Additionally, with the combination of service provider customers, fifty percent of all mobile subscribers globally will be connected to networks running Aviat microwave solutions.
NEC and Aviat’s unique and powerful partnership will drive strategic synergies with their respective strength to benefit from wireless transport business, leveraging the growth of 5G, rural broadband and private networks market. The combined product and IP portfolios create a broader and deeper technology set and a best-in-class offering for customers while boosting innovation.
What does this mean for the industry overall? This transaction will put Aviat and NEC in a strong position to deliver solutions to meet the expected demands of 5G, rural broadband, and private networks going forward, and builds on Avait’s successful Redline transaction in 2022, as well as the aforementioned 2019 North America partnership between NEC and Aviat.
These soon to be combined product and IP portfolios create the broadest and deepest technology set in the industry along with the best-in-class offering for our valued customers, boosting innovation. Top all of this with Aviat’s leading mission critical, high-power radios, all-outdoor microwave and multi-band solutions, microwave routing, and advanced software offerings, and you’ve got a unique and comprehensive solution set that will be soon available to all of our customers, globally.
Lastly, as the industry’s largest wireless transport specialist, Aviat will have even more power to innovate thanks to an expanded R&D capability and increased level of investment that will extend our company’s technology leadership and deliver the solutions that businesses need to succeed.
The transaction has been approved by the boards of directors of both companies and is subject to customary closing conditions, including regulatory approvals. Aviat expects the deal to close in the third calendar quarter of 2023. Following successful closure, both organizations will be united under the Aviat Networks brand, ensuring customers a seamless, single point of contact for sales, marketing, service and support.
Stay tuned for more news on this acquisition poised to fuel Aviat’s leadership in this evolving industry, ensure continued product innovation, and provide an exceptional customer experience.
We thank all of you for joining us on this exciting journey!
Source: 13.5% in CY2022 (by Revenue), Dell’Oro Microwave Transmission & Mobile Backhaul Quarterly Report 4Q22; 14.4% (by Revenue) in CY2022, Skylight Worldwide Microwave & Millimeterwave Radio Market Quarterly Market Share Report CY 4Q 2022 & Full Year 2022