IRVINE, Calif. - Mobix Labs, Inc. (NASDAQ: MOBX), a developer of connectivity solutions ranging from wired to next-generation wireless technologies, has announced the completion of its acquisition of RaGE Systems, Inc., a Massachusetts-based company known for its radio frequency design and manufacturing services. The acquisition is expected to enhance Mobix Labs' product development and innovation, as well as expand its customer base and market reach.
RaGE Systems brings expertise in 5G communications, mmWave imaging, and Software Defined Radio systems, serving commercial, industrial, defense, and aerospace sectors. The integration of RaGE Systems is anticipated to accelerate Mobix Labs’ development of wireless products and contribute to its financial growth.
Fabian Battaglia, CEO of Mobix Labs, expressed enthusiasm about the acquisition, stating it would spur increased innovation and accelerate the company's ability to extend its technology portfolio. Russell Cyr, CEO of RaGE Systems, also commented on the acquisition, highlighting the benefits of leveraging Mobix Labs' leadership and technology for RaGE Systems' growth and customer support.
Keyvan Samini, President and CFO of Mobix Labs, remarked that the transaction aligns with the company's global acquisition strategy and is expected to bolster Mobix Labs’ revenue and earnings while broadening its market presence.
Mobix Labs, headquartered in Irvine, California, provides mmWave 5G and C-Band wireless solutions, as well as connectivity and filtering products for communication systems in the aerospace, military, and high-reliability markets. The company's True Xero active optical cables and electromagnetic filtering products, acquired through the EMI Solutions, Inc. acquisition, are designed to meet the performance demands in large and growing markets.
InvestingPro Insights
Mobix Labs, Inc. (NASDAQ: MOBX) has recently completed the strategic acquisition of RaGE Systems, Inc., which is poised to enhance their product development and market expansion. However, the financial health and market performance of Mobix Labs are critical factors for investors, especially in light of this new venture. According to InvestingPro data, Mobix Labs has a market capitalization of $63.84 million, indicating the size of the company in the competitive tech landscape. Despite the potential for growth through the acquisition, the company’s revenue has seen a decline of 10.75% in the last twelve months as of Q2 2024. This could raise concerns about the immediate financial benefits of the acquisition.
Furthermore, the company is trading at a high Price / Book multiple of 15.37, which could suggest that the stock is quite expensive relative to the company's book value. This is a critical metric for investors to consider, especially when evaluating the company's current valuation in the wake of its recent acquisition news.
InvestingPro Tips reveal that Mobix Labs is not profitable over the last twelve months and also suffers from weak gross profit margins. This information, along with a noted high revenue valuation multiple, could be significant for investors assessing the financial stability of the company post-acquisition. Additionally, the stock has experienced a considerable hit over the last six months, with a price total return of -78.68%. This volatility could be a point of caution for potential investors looking at the company's long-term growth trajectory.
For those interested in further analysis and additional InvestingPro Tips, Mobix Labs currently has 13 more tips available on InvestingPro. Readers can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, providing a deeper dive into Mobix Labs' financials and market performance.
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