SAN DIEGO, CA, March 2, 2022 – RF Industries, Ltd, (NASDAQ: RFIL), a national manufacturer
and marketer of interconnect products and systems, today announced the completion of its
previously announced acquisition of Microlab/FXR LLC (Microlab), the radio frequency components
business of Wireless Telecom Group, Inc. (NYSE American: WTT).
Robert Dawson, President and CEO of RF Industries, commented, “We are excited about the
significant opportunity this acquisition creates to innovate and drive a more powerful product
roadmap for our combined company and welcome Microlab’s talented employees and customers
to RF Industries. Microlab brings us access to a new set of high-performance, network operator
approved products that we can sell to our growing customer base and through our extensive
distribution channel. In addition, Microlab has great customer relationships with both our existing
distributor and key carrier ecosystem customers, which gives us more control of the bill of
materials in key wireless applications.
“Microlab’s products are considered the gold standard in RF and Microwave distribution systems,
and with our focus on the significant growth opportunities we expect to see in the small cell and
DAS markets, we believe their complementary products in these markets will provide additional
scale and opportunity for overall margin improvement and further revenue growth.”
Mark Holdsworth, Chairman of the Board of RF Industries, commented, “The acquisition of
Microlab is another big step in the transformation of RF Industries as we continue executing on
our strategic plan to grow both organically and through targeted acquisitions. This is the largest
acquisition in RF Industries’ history and we believe that the accretive nature of this acquisition
shows our continued focus on providing shareholder value through the diligent use of capital.
We look forward to completing the integration of Microlab as we continue to pursue a robust
pipeline of future strategic opportunities.”
Microlab designs and manufactures high-performance RF and Microwave products enabling
signal distribution and deployment of in-building DAS (distributed antenna systems), wireless
base stations and small cell networks, and generated unaudited revenue of approximately $16
million and adjusted EBITDA of approximately $3.7 million for the twelve-month period ended
September 30, 2021. RF Industries expects the acquisition to be immediately accretive to its
stand-alone financials and anticipates realizing meaningful operating synergies upon the
integration of the Microlab business.
B. Riley Securities acted as the financial advisor to RF Industries and DLA Piper LLP (US) acted
as legal advisor.
Craig-Hallum acted as the financial advisor to Wireless Telecom Group and Bryan Cave
Leighton Paisner LLP acted as legal advisor.
About RF Industries
RF Industries designs and manufactures a broad range of interconnect products across
diversified, growing markets, including wireless/wireline telecom, data communications and
industrial. The Company’s products include high-performance components such as RF
connectors and adapters, dividers, directional couplers and filters, coaxial cables, data
cables, wire harnesses, fiber optic cables, custom cabling, energy-efficient cooling
systems and integrated small cell enclosures. The Company is headquartered in San Diego,
California with additional operations in Long Island, New York, Vista, California, Milford,
Connecticut, North Kingstown, Rhode Island and Parsippany, New Jersey. Please visit the RF
Industries website at www.rfindustries.com.
This press release contains forward-looking statements with respect to future events, including
opportunities for sales growth, overall margin improvement and revenue growth, which are
subject to a number of factors that could cause actual results to differ materially. Factors that
could cause or contribute to such differences include, but are not limited to: the Company’s
ability to successfully integrate Microlab and realize anticipated synergies, the duration and
continuing impact of the coronavirus pandemic on the U.S. economy and the Company’s
customers; changes in the telecommunications industry; the Company’s reliance on certain
distributors and customers for a significant portion of anticipated revenues; the impact of existing
and additional future tariffs imposed by U.S and foreign nations; the Company’s ability to execute
on its new go-to-market strategies and channel models; its ability to expand its OEM
relationships; its ability to continue to deliver newly designed and custom fiber optic and cabling
products to principal customers; its ability to maintain strong margins and diversify its customer
base; and its ability to address the changing needs of the market. Further discussion of these
and other potential risk factors may be found in the Company’s public filings with the Securities
and Exchange Commission (www.sec.gov) including its Annual Report on Form 10-K and its
Quarterly Reports on Form 10-Q. All forward-looking statements are based upon information
available to the Company on the date they are published, and the Company undertakes no
obligation to publicly update or revise any forward-looking statements to reflect events or new
information after the date of this release.
MKR Investor Relations Inc.
SOURCE: RF Industries, Ltd.