Acquisition Expected to Increase Airgain's Presence in the Fast-Growing Automotive Fleet and Industrial IoT Space
Airgain also Announces First Quarter 2017 Conference Call to be Held on Wednesday, May 3, 2017 at 4:30 p.m. EDT
SAN DIEGO, CA -- (Marketwired) -- 04/09/17 -- Airgain, Inc. (NASDAQ: AIRG), a leading provider of embedded antenna technologies used to enable high performance wireless networking, has entered into an asset purchase agreement with MCA Financial Group, Ltd., acting as the appointed receiver for Antenna Plus, LLC, to acquire substantially all of the assets and certain liabilities of Antenna Plus.
A privately-held supplier of antenna solutions based in Scottsdale, Arizona, Antenna Plus develops high-quality antenna products for mobile and automotive fleet applications for government, public safety, and Industrial IoT (Internet of Things) markets.
The purchase and sale were made pursuant to a court order for the sale and disposition of the assets of Antenna Plus, for a cash purchase price of approximately $6.4 million on April 7, 2017. The acquisition is expected to close within 20 calendar days, subject to the satisfaction of customary closing conditions. Antenna Plus generated unaudited revenue of $7.5 million in 2016. Airgain expects the transaction to be accretive within 2017 and to improve its long-term revenue potential.
Antenna Plus, an early innovator in the mobile fleet antenna market, adds a unique portfolio of cellular, GPS, Wi-Fi, and private radio frequency antenna products to the Airgain product line, as well as an established network of sales, distribution, and value-added reselling partners. We believe these additions will accelerate Airgain's penetration into several new and high growth markets, including mobile and automotive connectivity solutions for mission-critical applications, as well as outdoor antenna solutions for Industrial IoT applications.
According to Markets and Markets, a leading market research firm, the IoT market will grow from $157 billion in 2016 to $661 billion by 2021, representing a compound annual growth rate of 33 percent. Forrester, a research and advisory firm, also predicts fleet management in transportation, security, and surveillance applications (within government, inventory, and warehouse management) will be the hottest areas for IoT growth.
"With the large anticipated growth of IoT devices in automotive fleet, government, and industrial markets, we see an opportunity to build on our core strengths and expand our footprint beyond the embedded antenna category," said Charles Myers, President and Chief Executive Officer of Airgain. "Antenna Plus has spent close to 25 years building a solid business and reputation in its core markets of mobile and outdoor antenna systems, establishing themselves as quality and performance leaders. Through the acquisition of the Antenna Plus assets, we expect to accelerate our penetration into these new markets and create significant expansion opportunity for our addressable market."
Airgain Sets First Quarter 2017 Conference Call for Wednesday, May 3, 2017 at 4:30 p.m. EDT
Airgain will hold a conference call on Wednesday, May 3, 2017 at 4:30 p.m. Eastern Daylight Time (1:30 p.m. Pacific Daylight Time) to discuss its financial results for the first quarter ended March 31, 2017. Financial results will be issued in a press release prior to the call.
Airgain management will host the presentation, where they will also discuss additional details of the Antenna Plus acquisition, followed by a question and answer period.
Date: Wednesday, May 3, 2017
Time: 4:30 p.m. Eastern Daylight Time (1:30 p.m. Pacific Daylight Time)
U.S. dial-in: 1-877-451-6152
International dial-in: 1-201-389-0879
The conference call will be broadcast simultaneously and available for replay via the investor section of the company's website at www.airgain.com. Interested parties can also listen to the broadcast live by clicking here.
Please call the conference telephone number five minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Liolios at 1-949-574-3860.
A replay of the call will be available after 7:30 p.m. Eastern Daylight Time on the same day through June 3, 2017.
U.S. replay dial-in: 1-844-512-2921
International replay dial-in: 1-412-317-6671
Replay ID: 13658903
About Airgain, Inc.
Airgain is a leading provider of embedded antenna technologies used to enable high performance wireless networking across a broad range of home, enterprise, and industrial devices. Our innovative antenna systems open up exciting new possibilities in wireless services requiring high speed throughput, broad coverage footprint, and carrier grade quality. Our antennas are found in devices deployed in carrier, enterprise, and residential wireless networks and systems, including set-top boxes, access points, routers, gateways, media adapters, digital televisions, and IoT devices. Airgain partners with and supplies the largest blue chip brands in the world, including original equipment and design manufacturers, chipset makers, and global operators. Airgain is headquartered in San Diego, California, and maintains design and test centers in San Diego, Cambridge, United Kingdom, and Suzhou and Shenzhen, China. For more information, visit airgain.com.
Airgain and the Airgain logo are registered trademarks of Airgain, Inc.
Airgain cautions you that statements in this press release that are not a description of historical facts are forward-looking statements. These statements are based on the company's current beliefs and expectations. These forward-looking statements include statements regarding: the expected closing of the acquisition; the acquisition of the assets being accretive within 2017 and improving long-term revenue potential; and the acceleration of Airgain's penetration into a number of new and high growth markets, including the opportunity to build and expand Airgain's footprint beyond the embedded antenna category. In addition, the unaudited revenue of Antenna Plus for the year ended December 31, 2016 included in this press release is preliminary and represents the most current information available to Airgain. The inclusion of forward-looking statements should not be regarded as a representation by Airgain that any of our plans will be achieved. Actual results may differ from those set forth in this press release due to the risk and uncertainties inherent in our business, including, without limitation: risks associated with the satisfaction of customary closing conditions for the acquisition; adjustments to the unaudited revenue for Antenna Plus reported for the year ended December 31, 2016 in connection with completion of an audit by our independent registered accounting firm; the acquisition may negatively affect our operating results, financial condition or cash flows, including as a result of the assumption of known and unknown liabilities; risks associated with integrating the Antenna Plus business into our current business; the market for the acquired antenna products is developing and may not develop as we expect; risks associated with penetrating new emerging markets; and our products are subject to intense competition, and competitive pressures from existing and new companies may harm our business, sales, growth rates and market share; and other risks described in our prior press releases and in our filings with the Securities and Exchange Commission, including under the heading "Risk Factors" in our Annual Report on Form 10-K. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof, and we undertake no obligation to revise or update this press release to reflect events or circumstances after the date hereof. All forward-looking statements are qualified in their entirety by this cautionary statement, which is made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.
Director of Investor Relations
Matt Glover or Najim Mostamand
Liolios Group, Inc.
+1 949 574 3860
Source: Airgain, Inc.