Mobix Labs Announces Intention to Commence Hostile Tender Offer for Peraso
In its latest salvo to buy Peraso (PRSO), Mobix Labs (MOBX) formally announced plans to commence a hostile exchange offer to acquire all outstanding shares of Peraso. The move follows a meeting between the two companies last week, after which Mobix issued a statement proposing a transaction structured as 30% cash and 70% common stock that could close within 75 days. We note that a specific purchase price was not provided in that announcement. Peraso subsequently clarified that the companies had held an exploratory call during which it neither shared any material non-public information nor responded to Mobix’s proposal. Peraso has invited Mobix to participate in its strategic review process, but Mobix has thus far declined to enter into the company’s standard confidentiality agreement as it seeks to maintain direct communication with Peraso’s stockholders.
While we remain skeptical that a combination with Mobix is the best path forward for maximizing shareholder value at present, the acquisition interest has been a boon to the price and liquidity of PRSO shares. Given our expectations that Peraso would need to raise additional capital during 2H ’25, we surmise the recent strength in shares provides the company with an opportunity to bolster its balance sheet on relatively better terms. In this regard, Peraso recently entered into an agreement providing for the immediate exercise of certain outstanding warrants to purchase up to 952,380 shares at a reduced exercise price of $1.18 per share for gross proceeds of $1.1 million. To induce exercise of the warrants, Peraso also issued new Series E warrants to purchase up to 952,380 shares at an exercise price of $1.25 per share. The Series E warrants are exercisable in six months and expire five and a half years from the date of issuance. Between the warrant exercise and sales under the company’s existing ATM program, we believe Peraso now has sufficient capital to operate through year-end and have adjusted our model accordingly. Most notably, the higher share count increases our non-GAAP EPS estimates for FY ’25 and FY ’26 from $(0.84) and $(0.66), respectively, to $(0.81) and $(0.57).
Operationally, Peraso continues to expand its presence in the fixed wireless access market. To wit, the company has secured an initial volume order from a new global equipment supplier valued at $0.9 million. Additionally, existing customer WeLink Communications is also leveraging Peraso’s 60 GHz technology across its footprint in three major U.S. metropolitan markets and plans to expand to additional markets. When combined with the company’s successful push into the defense vertical, we think Peraso’s mmWave business is poised for sustained revenue growth moving forward. Our price target remains $2.50 based on a FY ’26 EV/Sales multiple of 1x.
Our model with report and disclosures is available here.
Disclosure(s):
K. Liu & Company LLC (“the firm”) receives or intends to seek compensation from the companies covered in its research reports. The firm has received compensation from Peraso Inc. (PRSO) in the past 12 months for “Sponsored Research.”
Sponsored Research produced by the firm is paid for by the subject company in the form of an initial retainer and a recurring monthly fee. The analysis and recommendations in our Sponsored Research reports are derived from the same process and methodologies utilized in all of our research reports whether sponsored or not. The subject company does not review any aspect of our Sponsored Research reports prior to publication.