xG Technology Inc (NASDAQ:XGTI) announced that, effective, it has completed the acquisition of Vislink Communication Systems and has now assumed full ownership of the business. This follows a vote by Vislink shareholders today which approved, as expected, amendments to the existing agreements executed on December 16, 2016, allowing for the formal transition of Vislink to xG to take place on today’s date.
The acquisition, as originally announced on October 20, 2016 was a $16 million binding asset purchase agreement. The acquisition was paid for with $6.5 million in cash and a $9.5 million promissory note. xG presently plans to pay the promissory note off with a combination of new debt and internal funding.
In the wake of the announcement, XG Technology are up nearly 16% to $2.45 in pre-market trading. XGTI has a 1-year high of $34.68 and a 1-year low of $1.17. The stock’s 50-day moving average is $1.80 and its 200-day moving average is $0.73.
On the ratings front, Roth Capital analyst William Gibson reiterated a Buy rating on XGTI, with a price target of $3.50, in a report issued on January 31. The current price target represents a potential upside of 66% from where the stock is currently trading. According to TipRanks.com, Gibson has a yearly average loss of 5.1%, a 38% success rate, and is ranked #3812 out of 4373 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.