2023-12-18 00:00:00
Sargon, a global leader in end-to-end solutions for small service providers and private networks, is expecting a significant boost to its profit margin following its recent acquisition of Ciclo. At a recent investor conference, Sargon’s management expressed their optimism about the move, which gives the company immediate access to Ciclo’s millimeter wave market in North America, including its fixed wireless access solutions.
The acquisition is expected to have a positive impact on Sargon’s revenues, with an estimated increase of $25-29 million in 2024. Additionally, Sargon anticipates an improvement in its consolidated gross profit margin as Ciclo has significantly higher profit margins than Sargon’s historical averages. To ensure a smooth integration process, Ciclo’s CEO, Ronan Ben Hamo, will join Sargon’s management team.
In a note to investors, Sargon’s CEO Doron Erzi stated, “This acquisition is expected to accelerate our growth strategy by expanding our presence in the fastest growing segments of the market and improving our end-to-end solutions to better respond to the changing needs of private networks. We anticipate positive effects on our gross profit margin in the immediate term and profitability in the medium to long term.”
The acquisition of Ciclo is seen as a strategic move for Sargon to strengthen its position in the market and capitalize on the growing demand for end-to-end solutions for small service providers and private networks. With the anticipation of positive effects on the company’s profit margin, Sargon is optimistic about the future growth and success of the acquisition.
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