xG Technology Completes Purchase of Integrated Microwave Technologies, LLC

xG Technology, Inc. (“xG”) (Nasdaq: XGTI, XGTIW), a leader in providing critical wireless communications for use in challenging operating environments, announced today that it has completed its acquisition of assets of Integrated Microwave Technologies, LLC (“IMT”) originally announced on Jan. 19, 2016. The acquisition was completed using debt financing from the seller and will require payoff over the next eighteen months.

The acquisition of the IMT assets is expected to deliver significant benefits to xG in a number of areas. By aligning its operations and technology platforms with those of IMT, xG will be able to expand more deeply into markets it is currently active in, while opening growth possibilities in new sectors. xG gains immediate access to the IMT product line, which opens new cross-selling opportunities to xG’s existing customer base, and enriches its competitive offerings. Likewise, IMT can now fill the demonstrated need among its own customers for the kind of secure, rapidly-deployable mobile broadband solution that xMax is uniquely suited to fill.

Finally, IMT’s manufacturing expertise is expected to drive additional operational, production and other cost efficiencies at xG. This and other aspects of the transaction will serve to yield compelling financial benefits to xG and prepare it realize even more growth.

George Schmitt, CEO and Board Chairman of xG Technology, said, “We welcome the IMT family to be part of xG Technology and are delighted with the synergies that we see between the two companies. We expect these synergies to result in substantial reductions in, and avoidance of, costs that will total approximately $2MM per year. We would also like to thank Skyview Capital, the seller of IMT, for extending us this opportunity and for their assistance in helping ensure a timely closing of the acquisition.”

Roger Branton, CFO of xG Technology, said, “This acquisition is expected to be cash flow positive from day one and accretive to the combined companies. xG and IMT each have distinctive strengths that will be even more pronounced by integrating our operations. In addition to broadening our capabilities to execute more effectively, this acquisition will make xG well-positioned from a financial standpoint to embark on its next phase of growth.”

John Payne IV, newly-appointed President of the IMT Division of xG Technology, and a corporate officer of xG, said, “We at IMT are delighted to become a major part of xG Technology and look forward to working together to develop joint sales strategies and to take advantage of the synergies available to the combined entities.”