xG Technology Inc (NASDAQ:XGTI) shares surged following the news that xG and Vislink, Plc have closed on the acquisition of Vislink Communication Systems and established a formal transition date of the business which is February 2, 2017. The mutually agreed upon transition date allows for Vislink shareholders to approve amendments to the existing agreements executed on December 16, 2016.
Given that Vislink shareholders approved the transaction nearly unanimously on January 9th, 2017, the Company anticipates approval of the amendments to be a formality.
George Schmitt, Executive Chairman and CEO of xG Technology, said, “We are excited to conclude this final step in the Vislink acquisition, and have begun the process of integrating our operational teams across all our business lines. We appreciate the ongoing efforts of our counterparts at Vislink, Plc to ensure a smooth transition of the business.”
On the ratings front, Roth Capital analyst William Gibson reiterated a Hold rating on XGTI, with a price target of $0.50, in a report issued on November 21. The current price target reflects a potential downside of 76% from last closing price. According to TipRanks.com, Gibson has a yearly average loss of 2.7%, a 41% success rate, and is ranked #3505 out of 4342 analysts.
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.