Baylin Technologies Backlog Hits Record C$61M After Kaelus Acquisition

Baylin Technologies’ firm purchase-order backlog reached a record C$61 million , up from C$20.4 million, following its acquisition of Kaelus and stronger satellite communications sales. Revenue conversion will vary by business line, with infrastructure products generally turning into revenue faster than custom antenna and satellite programs. The Kaelus acquisition broadened Baylin’s product portfolio, geographic reach and customer relationships, including ties to Ericsson and Nokia, while creating cross-selling opportunities with Baylin’s North American infrastructure business. Kaelus adds cell-tower antenna, synchronization, RF conditioning and testing technologies. Baylin reported improved infrastructure gross margins of more than 60% and sees growth potential in satellite communications and defense, despite muted North American wireless infrastructure spending expected through late 2026. Net debt stood at approximately C$11 million after the transaction, while the fully diluted share count rose to roughly 245–247 million.

Baylin Technologies TSE: BYL reported a record backlog of C$61 million in firm purchase orders following its acquisition of Kaelus, as the company seeks to expand its wireless infrastructure, satellite communications and custom antenna businesses. Chief Executive Officer Leighton Carroll said the backlog increased from C$20.4 million and reflects contributions from Kaelus as well as increased sales activity in Baylin’s satellite communications division. He said portions of the backlog will convert to revenue at different rates depending on the business line, with infrastructure products generally moving more quickly while custom antenna and satellite programs may extend into next year.

Baylin completed its acquisition of Kaelus at the end of May. Carroll said Kaelus adds complementary wireless infrastructure products, operations in Sweden, Finland, the United States, Australia, China and India, and direct relationships with equipment makers Ericsson and Nokia. According to Carroll, the companies’ product portfolios have “zero overlap,” while creating potential cross-selling opportunities. Kaelus has limited sales in North America, where Baylin’s Galtronics infrastructure business sells to carriers and infrastructure providers including AT&T, Verizon, T-Mobile, Rogers, Bell, Telus, Crown Castle, SBA and others. Carroll said Baylin acquired Kaelus at a 4.6-times multiple, with approximately 62.5% of the purchase price paid in cash and the remainder paid in shares. The founder of Kaelus elected to receive a portion of the consideration in Baylin shares, Carroll said. Kaelus supplies cell-tower antenna technology, synchronization products, RF conditioning equipment, and test-and-measurement products. Carroll highlighted Kaelus’s patented beam-through antenna technology, which enables carriers to stack antennas on towers and potentially reduce tower-rental costs. He said there are three companies offering that type of technology: Amphenol through its CommScope acquisition, Huawei and Kaelus. The company also produces synchronization products used in wireless networks. Carroll said Kaelus developed anti-jamming versions of those products following demand associated with the war in Ukraine. He said Nokia deployed the equipment for Ukrainian operator Kyivstar, and that the network remained operational during a Russian missile attack. Carroll said Baylin’s wireless infrastructure division grew 40% during 2024, which he described as the lowest capital-expenditure enviro...