Aviat Boosts Wireless Access Portfolio With 4RF Buyout

Aviat Networks, Inc. AVNW recently inked a definitive agreement to acquire 4RF Limited for an undisclosed amount. The acquisition marks a pivotal step for Aviat in strengthening its wireless access portfolio and enhancing its capabilities to serve a wider range of customer needs for private networks across multiple industries.

Headquartered in Wellington, New Zealand, 4RF has established itself as a leading provider of industrial wireless access solutions including narrowband point-to-point, multi-point radios, Private LTE and 5G routers. These products are designed specifically for critical infrastructure networks including utilities, oil and gas, transportation, mining and public safety.

Spending on critical infrastructure networks is increasing worldwide due to the growing demand for security, automation, and fixed and mobile data communications. Operators of mission-critical networks around the world rely on Aviat for its ultra-reliable and high-performance wireless solutions.

Post-acquisition, Aviat will leverage 4RF's expertise in critical infrastructure networks and its extensive customer base across 160 countries worldwide to explore cross-selling opportunities. With a strong presence in more than 300 critical infrastructure customers, 4RF is expected to boost and expand Aviat's existing portfolio for the global industrial wireless access markets including Private LTE/5G.

Further, the buyout will also enable Aviat to access the narrowband connectivity segment and the Cellular (LTE/5G) Router market. This will likely help Aviat to enhance its reputation in delivering cutting-edge wireless communications technologies across diverse industries and improve its revenues in the upcoming quarters. The transaction is expected to be accretive to earnings from the first year of its operation.

Shares of Aviat have lost 17.5% over the past year against the industry's growth of 40.3%.

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Zacks Rank and Key Picks

Aviat currently carries a Zacks Rank #5 (Strong Sell).

Some better-ranked stocks in the industry have been discussed below.

Arista Networks, Inc., carrying a Zacks Rank of 2 (Buy), supplies products to a prestigious set of customers, including Fortune 500 global companies in markets such as cloud titans, enterprises, financials and specialty cloud service providers.

Arista delivered a trailing four-quarter average earnings surprise of 15.39%. It has a long-term growth expectation of 16.07%.

Motorola Solutions, Inc. MSI provides services and solutions to government segments and public safety programs, along with large enterprises and wireless infrastructure services. Currently, Motorola holds a Zacks Rank 2.

It delivered a trailing four-quarter average earnings surprise of 7.54% and has a long-term growth expectation of 9.47%. In the last reported quarter, Motorola delivered an earnings surprise of 11.51%.

Silicon Motion Technology Corporation, carrying a Zacks Rank of 2, is a pioneer in developing RF integrated circuits for mobile devices and NAND flash controller integrated circuits for USB flash drives and memory cards.

The company delivered a trailing four-quarter average earnings surprise of 4.72%. It has a long-term growth expectation of 38.16%.

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