Ceragon Networks Rises to 3-Year High After Agreement to Buy Nera Networks
Ceragon Networks Ltd. climbed to the highest level in more than three years after the wireless networking-systems developer entered into an agreement to buy all the outstanding shares of Nera Networks from Eltek ASA.
The stock surged as much as 8 percent to 52.28 shekels, the highest intraday level since December 2007. The shares traded at 52 shekels at 11:17 a.m. in Tel Aviv, giving the company a market value of 1.74 billion shekels ($488 million).
Ceragon, based in Tel Aviv, said it will pay about $48.5 million for Nera on a cash-free, debt-free basis.
“Year 2011 is expected to be a transition year with no immediate profitability,” Chief Executive Officer Ira Palti told reporters today. With the merger, “we expect to produce more profitability than we would have produced ourselves by 2012.”
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