Chip startup Mobix Labs Inc. (Nasdaq: MOBX) is set to acquire RaGE Systems Inc., a wireless tech company based in Massachusetts. The price is up to $20 million.
“With this acquisition, Mobix Labs will decrease the time necessary to develop cutting-edge wireless communications and integrated circuit products for its customers, particularly in the fast-growing mmWave 5G sector,” said Fabian Battaglia, chief executive of Mobix Labs.
Irvine-based Mobix, founded in 2020, describes itself as delivering “disruptive next-generation wireless and connected solutions” for a broad range of applications in markets including 5G infrastructure, automotive, consumer electronics, e-mobility, healthcare and defense.
Positive Impact
Mobix is looking forward to an immediate positive impact from the acquisition.
“This acquisition is poised to immediately increase Mobix Labs’ revenue and earnings per share.
Acquiring RaGE is a significant step in our global expansion strategy,” said Keyvan Samini, president and chief financial officer of Mobix Labs in a statement on May 9.
Mobix Labs is expected to complete the acquisition of RaGE this month, according to Mobix Labs.
The total price consists of about $2 million in cash, approximately $10 million worth of Mobix Labs stock and possible earn-out payments of up to $8 million over eight fiscal quarters in a combination of cash and stock upon satisfaction of certain financial metrics, according to Mobix Labs.
Mobix Labs on May 14 reported revenue of $1.15 million for the fiscal second quarter ended March 31 and projected net revenue within a range of approximately $1.8 million to $2.2 million in the current quarter. The company’s shares dropped 13% the following day but have since regained ground.
