xG Technology Inc (NASDAQ:XGTI) investors cheer the news that the wireless communications firm has entered into a binding agreement to acquire the assets of the Vislink Communication Systems division from Hungerford. The purchase is expected to close by year-end 2016. xG had previously entered into a letter of intent with Vislink Plc, and is now pleased to announce its binding agreement to acquire Vislink.
xG Technology shares reacted to the news, rising nearly 17% to $0.48 in pre-market trading Thursday.
Roger Branton, CFO and Co-founder of xG Technology, said, “We believe that Vislink chose to sell the division to a purchaser that would operate the business as a going concern, versus financial acquirers. We further believe that the combined business will create a market leader in video technology providing scale and global reach. Considering the inherent synergies with our business unit Integrated Microwave Technologies, we believe the fair value of the ongoing business and assets far exceeds the purchase price.”
Vislink Communication Systems, which has a present year sales run rate that is expected to be between $45M-$50M, specializes in the wireless capture, delivery and management of secure, high-quality, live video from the field to the point of usage, or “from scene to screen.” Vislink delivers global solutions comprising hardware and related services to two core markets: broadcast & media and public safety & surveillance. In the broadcast & media market, Vislink provides broadcast communication links for the collection of live news, sport and entertainment events. In the public safety and surveillance markets, Vislink provides secure video communications and mission-critical solutions for law enforcement, defense and homeland security applications. (Original Source)
xG Technology, Inc. engages in the development of patented wireless communications and spectrum sharing technologies. It operates through the following segments: Broadcast, Sports and Entertainment, and Government/Surveillance. The Broadcast segment includes a line of margin receiver products including DR3, crx6, and CIRAS. The Sport and Entertainment segment offers microLite, available in both licensed and unlicensed frequency bands. The Government/Surveillance segment sells IMT, MiniMobile Commander and Mobile Commander.