In a strategic move bolstering its presence in broadband access, DZS, a US-based company, has finalized the acquisition of NetComm from Casa Systems for up to $10 million. This acquisition comes on the heels of Casa’s recent divestment of its 5G and cable businesses, marking the conclusion of its restructuring efforts.
Initially priced at $7 million, with an additional $3 million contingent on 2024 earnings targets, the acquisition represents a significant opportunity for DZS to expand its portfolio and strengthen its position in broadband networking and cloud software solutions. Charlie Vogt, President and CEO of DZS, expressed enthusiasm about the acquisition, emphasizing its alignment with the company’s vision and strategy of technological leadership.
NetComm, an Australia-based company established in 1982, brings a wealth of experience and innovative products to DZS. Despite its acquisition by Casa Systems for approximately $100 million in 2019, NetComm’s value has seen a substantial decline, reflective of broader challenges faced by Casa Systems in the telecom industry.
Steve Collins, CEO of NetComm, highlighted the compatibility of the two companies’ cultures and product offerings, indicating a seamless transition for NetComm’s customers. The acquisition is expected to enhance DZS’s broadband networking and cloud software portfolio, catering to a diverse range of customers across multiple regions.
The acquisition marks the culmination of Casa Systems’ restructuring efforts, which began following its $150 million IPO in 2017. Struggles in the 5G market and the ill-fated NetComm acquisition contributed to Casa’s decline, ultimately leading to its divestment and restructuring.
Despite Casa’s challenges, the acquisition presents new opportunities for NetComm and its customers under the DZS umbrella. With a renewed focus on innovation and product excellence, the combined entity aims to deliver advanced broadband networking solutions to meet the evolving needs of the telecommunications industry.
