Wireless backhaul equipment maker Ceragon Networks Ltd. (Nasdaq: CRNT; TASE:CRNT) said today that it has acquired in entirety privately-held Elxys Innovations, of Athens, Greece.

Elxys is a designer of advanced, next-generation radio-frequency integrated circuits (RFIC).

The total cost was $1.6 million plus 200,000 restricted share units to Elxys founders who are now Ceragon employees.

The acquisition solidifies Ceragon's leadership in RF design and allows it to further optimize its core radio technology.

Ceragon president and CEO Ira Palti explained the deal's significance, saying, "Mobile networks are becoming more and more dependent on high-capacity wireless backhaul. We believe that the next generation microwave radios will be based on highly integrated RFICs. Adding a group of proficient RFIC engineers will allow us to reach higher levels of integration while continuing to the stretch the envelope in terms of radio capacity, reliability and availability. In the process, it will create a significant product differentiation for Ceragon."

Elxys co-founder and CEO Emmanouil Metaxakis said, "We have had a successful business relationship with Ceragon over the past few years, and we look forward to continue incorporating our radio technology with Ceragon products to substantially expand their performance and capabilities."

Elxys has been Ceragon's design partner for a number of years.

Ceragon shares closed at $9.54 on Friday, giving a market cap of $332.76 million.

Published by Globes [online], Israel business news - www.globes-online.com - on September 20, 2010

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