Strategic Acquisition broadens SuperCom's Solutions towards a Safe and Secure Connected World
SuperCom (SPCB), a global provider of secure solutions for the e-Government, Public Safety, HealthCare, and Finance sectors, today announced the acquisition of Alvarion, a Tel Aviv-based provider of autonomous Wi-Fi networks with a proven record of reliability and performance in over 25,000 sites in more than 95 countries.
Alvarion designs solutions for Carrier Wi-Fi, Enterprise Connectivity, Smart City, Smart Hospitality, Connected Campuses and Connected Events that are both complete and heterogeneous to ensure ease-of-use and optimize operational efficiency. Carriers, Local Governments and Hospitality sectors worldwide deploy Alvarion's intelligent Wi-Fi networks to enhance productivity and performance. In the past few years, Alvarion went through a transition from being a market leader of Wi- Max and backhaul services to being one of the most influential players in the Wi-Fi based solution.
"This synergistic acquisition is in line with our mission to make the world safer, more secure and more connected, and further extends SuperCom's range of capabilities into new markets, distribution outlets, products and services," commented Arie Trabelsi, CEO of SuperCom. "One of them is the Secure Internet of Things (SIoT) where Alvarion's network capability merges with our M2M/IoT products to present an attractive offering to the market and provides us access to a large and diverse base of more than 25,000 customers in more than 95 countries. As a recognized leader in the emerging industry of Secure Connected Things, we continue to invest and acquire additional capabilities at attractive valuations to expand our strategic position. This acquisition further diversifies our reach into a number of key industry verticals. Furthermore, it is in-line with our stated growth strategy of providing a more integrated offering to customers through complementary and interconnected products and solutions."
Alvarion, as a SuperCom company, will continue to provide full support, services and upgrades for its award-winning Legacy, WBS series, and WBSac line of products, and will continue to invest in its customers around the globe by providing full support to its legacy and new line of products. Alvarion will offer attractive Service-Level Agreements to its worldwide customers.
Mr. Trabelsi added "I would like to assure all of Alvarion's loyal customers of our commitment to support and further enhance Alvarion's products and services."
Alvarion's average annual revenue in recent years was approximately $8 million with gross margins of more than 50%. The majority of these sales were generated through the Company's worldwide distribution network, which will continue to be available to distribute Alvarion products. Going forward, the high level of service and support will continue as usual by the Alvarion team, while new sales will be generated through both Alvarion's and SuperCom's global distribution channels. As a result of this transition, the annual revenue run rate from Alvarion's products may grow to exceed recent year levels within a few quarters.
In consideration for this acquisition, SuperCom will pay up to $1 million in cash and an additional earn-out of up to $1 million during the next two years, mainly based on sales from the Alvarion division.
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