RF Industries, Ltd announced it has entered into a definitive agreement to acquire Microlab LLC, the RF components business of Wireless Telecom Group, Inc., for an aggregate cash consideration of $24.25 million. The transaction, which was unanimously approved by the board of directors of both companies, is subject to various terms and conditions, including approval by Wireless Telecom Group's shareholders. Wireless Telecom Group has agreed to file a proxy statement regarding the proposed transaction with the Security and Exchange Commission. Closing of the transaction is anticipated to occur in the first calendar quarter of 2022.

Microlab designs and manufactures high performance RF and Microwave products enabling signal distribution and deployment of in-building distributed antenna systems, wireless base stations and small cell networks, and generated unaudited revenue of approximately $16 million and adjusted EBITDA of approximately $3.7 million for the twelve-month period ended 9/30/2021. RF Industries expects the transaction to be immediately accretive to its stand-alone financials and anticipates realizing meaningful operating synergies upon the integration of the Microlab business.

Robert Dawson, president and CEO of RF Industries, commented, "We are excited to announce the pending acquisition of Microlab. This acquisition is in line with our previously announced strategy for driving revenue growth both organically and through the acquisition of companies that give us access to new products that we can sell to our growing customer base and through our extensive distribution channel. Microlab's products are known worldwide for their superior quality and performance and are considered the gold standard in RF and microwave distribution systems. With our focus on the significant growth opportunities we expect to see in the small cell and DAS markets, we believe Microlab's products will provide additional scale and opportunity for further revenue growth. We look forward to welcoming Microlab's talented employees and customers to RF Industries."

RF Industries intends to pay the purchase price with a combination of cash on hand and borrowings from a credit facility.

B. Riley Securities is serving as the financial advisor to RF Industries and DLA Piper is acting as legal advisor.

Craig-Hallum is serving as the financial advisor to Wireless Telecom Group and Bryan Cave Leighton Paisner LLP is acting as legal advisor.