Westell Technologies Inc. (NASDAQ:WSTL) Buyout Fails To Enthuse Market

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Ever since Westell Technologies Inc. (NASDAQ:WSTL) bought out its smaller competitor Cellular Specialities for a purported $39 million in order to get its hands around the bought out firms flagship ClearLink product bucket on 3rd March, the stock has been struggling to hold on to its investor confidence.

ClearLink – A Huge Value Add

This low PIM, but highly efficient solution is designed keeping in mind the use of these solutions in the small cells and antenna systems vertical. The Aurora based firm forked out the purchase price in cash for a company which had a annual revenue of $37 million on its books for year ending 31st December. The solution sets which are part of the ClearLink product bucket include “Universal DAS interface Trays, passive DAS interface units, system components, and antennas”.

Synergies Between The Two Firms

In his efforts to explain the possible synergies between the two firms in the long run, Westell Technologies Inc. (NASDAQ:WSTL) Senior Vice President and Chief Financial Officer Tom Minichiello  has been quoted to have said that, “ There are some excellent synergies between CSI’s and Westell’s product lines including integrated the Kentrox optimum management system with CSI’s active Universal DAS interface Tray. In addition, we’ll coordinate sales activities to jointly support opportunities with common customers and operational leaders will work together to explore opportunities to source products more effectively”.

Strong Long Term Growth Projected For Combined Firm

Further expounding the reasons for this all cash deal, Westell Technologies Inc. (NASDAQ:WSTL) disclosed that the bought out company over the past couple of years has been generating sustained margins and had demonstrated profitability of its operations. Looking ahead, the firm hopes to leverage the revenue stream already in place with the launch of New DAS solution called “Universal DAS Interface Unit” to build a much stronger financial platform for its future operations.

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