Aviat Networks agreed to acquire NEC’s wireless transport business in a cash and stock deal valued at $70 million, a move Dell’Oro Group data for 2022 showed would make the US vendor the largest microwave backhaul specialist in the market.

The companies stated NEC’s end-markets and product portfolio are complementary to Aviat Networks’ wireless transport products.

Aviat Networks anticipates the deal will contribute approximately $150 million in annual revenue, while increasing the scale and reach of its global business. The combined business will serve more than 20 tier-1 service providers.

NEC stated it will continue to have a presence in the microwave backhaul sector as the largest minority shareholder in Aviat Networks.

The Japanese vendor added the deal will bring significant benefits to both companies, allowing it to focus on its core business.

Aviat Networks will benefit from expanded R&D capability and higher levels of investment.

The deal was approved by the boards of both companies and is set to complete during Q3, subject to customary closing conditions.

NEC will receive $45 million in cash and $25 million in Aviat Networks stock.

In 2019 NEC appointed Aviat Networks as its channel partner for North America.