DZS Sells Enterprise IoT Portfolio to Lantronix for $6.5 Million
DZS (DZSI) has announced the sale of its enterprise Industrial Internet of Things (IoT) solutions portfolio to Lantronix for $6.5 million in an all-cash transaction. The deal includes the transfer of development, product, and sales resources. The divestiture aims to strengthen DZS's balance sheet and allow the company to focus on its core Networking, Connectivity, and Cloud Edge Software portfolio. Combined with the recently announced AXON Networks transaction, DZS will strengthen its balance sheet by approximately $40 million in cash and reduction in long-term debt. The acquisition benefits Lantronix by adding approximately 60 customers and expanding its footprint across the United States, Europe, and Australia.
DZS (DZSI) ha annunciato la vendita del suo portafoglio di soluzioni per l'Internet delle Cose (IoT) industriali a Lantronix per 6,5 milioni di dollari in un'operazione completamente in contante. L'accordo include il trasferimento di risorse per lo sviluppo, il prodotto e le vendite. La dismissione mira a rafforzare il bilancio di DZS e a consentire all'azienda di concentrarsi sul suo portafoglio principale di Networking, Connettività e Software Cloud Edge. Unita alla recente transazione con AXON Networks, DZS rafforzerà il proprio bilancio di circa 40 milioni di dollari in contante e ridurrà il debito a lungo termine. L'acquisizione offre vantaggi a Lantronix aggiungendo circa 60 clienti e ampliando la sua presenza negli Stati Uniti, in Europa e in Australia.
DZS (DZSI) ha anunciado la venta de su cartera de soluciones de Internet de las Cosas (IoT) industriales a Lantronix por 6,5 millones de dólares en una transacción totalmente en efectivo. El acuerdo incluye la transferencia de recursos de desarrollo, producto y ventas. La desinversión tiene como objetivo fortalecer el balance de DZS y permitir que la empresa se enfoque en su cartera principal de Redes, Conectividad y Software Cloud Edge. Combinado con la reciente transacción de AXON Networks, DZS fortalecerá su balance en aproximadamente 40 millones de dólares en efectivo y reducirá su deuda a largo plazo. La adquisición beneficia a Lantronix al añadir aproximadamente 60 clientes y expandir su huella en Estados Unidos, Europa y Australia.
DZS (DZSI)는 Lantronix에 650만 달러에 자사의 산업용 사물인터넷(IoT) 솔루션 포트폴리오를 현금 거래로 판매한다고 발표했습니다. 이번 계약에는 개발, 제품 및 판매 자원의 이전이 포함됩니다. 자산 매각은 DZS의 재무 상태를 강화하고 본래의 네트워킹, 연결성 및 클라우드 에지 소프트웨어 포트폴리오에 집중할 수 있도록 합니다. 최근 발표된 AXON Networks 거래와 결합하여 DZS는 약 4000만 달러의 현금을 통해 재무 상태를 강화하고 장기 부채를 줄일 것입니다. 이번 인수는 Lantronix에 약 60명의 고객을 추가하고 미국, 유럽 및 호주 전역에 입지를 확대하는 혜택을 제공합니다.
DZS (DZSI) a annoncé la vente de son portefeuille de solutions pour l'Internet des objets (IoT) industriel à Lantronix pour 6,5 millions de dollars dans le cadre d'une transaction entièrement en espèces. L'accord inclut le transfert des ressources de développement, de produit et de vente. La cession a pour but de renforcer le bilan de DZS et de permettre à l'entreprise de se concentrer sur son portefeuille principal de Réseautage, Connectivité et Logiciel Cloud Edge. Associé à la récente transaction AXON Networks, DZS renforcera son bilan d'environ 40 millions de dollars en espèces et réduira sa dette à long terme. L'acquisition bénéficie à Lantronix en ajoutant environ 60 clients et en élargissant sa présence aux États-Unis, en Europe et en Australie.
DZS (DZSI) hat den Verkauf seines Portfolios von Lösungen für das industrielle Internet der Dinge (IoT) an Lantronix für 6,5 Millionen Dollar in einer rein bar bezahlten Transaktion angekündigt. Der Deal umfasst die Übertragung von Entwicklungs-, Produkt- und Verkaufsressourcen. Die Veräußeryung zielt darauf ab, die Bilanz von DZS zu stärken und dem Unternehmen zu ermöglichen, sich auf sein Kerngeschäft in den Bereichen Netzwerk, Konnektivität und Cloud-Edge-Software zu konzentrieren. Zusammen mit der kürzlich angekündigten Transaktion mit AXON Networks wird DZS seine Bilanz um etwa 40 Millionen Dollar in bar stärken und die langfristige Verschuldung reduzieren. Die Übernahme kommt Lantronix zugute, indem sie etwa 60 Kunden hinzufügt und die Präsenz in den USA, Europa und Australien erweitert.
- All-cash transaction of $6.5 million strengthens balance sheet
- Combined with AXON Networks deal, adds approximately $40M in cash and reduces long-term debt
- Strategic focus refinement on core business segments
- Divestment of revenue-generating IoT portfolio segment
- Loss of approximately 60 customers from IoT segment
Transaction bolsters DZS balance sheet and refines focus on its category-defining Broadband Networking and Connectivity systems and Cloud Edge software portfolio
DALLAS, Nov. 07, 2024 (GLOBE NEWSWIRE) -- DZS (OTC: DZSI), a developer of Networking and Connectivity systems and Cloud Edge software solutions enabling broadband everywhere, today announced the sale of its enterprise Industrial Internet of Things (IoT) solutions portfolio to Internet of things and remote environment management leader Lantronix. The all-cash,
The acquisition for Lantronix enhances its internet of things (IoT) product portfolio, adds approximately 60 customers including several new marquee customers and expands its footprint spanning the United States, Europe and Australia.
“When we acquired NetComm in June, our investment thesis was centered around the technology, customers and development synergies aligned with its Fiber Extension, Fixed Wireless Access and Home Broadband solutions which complement our broadband Networking and Connectivity portfolio,” said Charlie Vogt, President and CEO, DZS. “With Lantronix acquiring our enterprise IoT portfolio, we create a win-win-win for DZS, Lantronix and our enterprise IoT customers. Lantronix represents an extensive and innovative IoT portfolio focused on smart cities, automotive and enterprise markets. The Lantronix and recently announced AXON Networks transactions bolster our balance sheet with approximately
“The strategic acquisition of DZS’ IoT portfolio demonstrates our commitment to growing our global presence in the Enterprise IoT Market,” stated Saleel Awsare, President and CEO of Lantronix. “The acquisition strengthens our competitive offering, contributes new blue-chip names to our customer base, and unlocks growth opportunities for our IoT customers.”
About DZS
DZS Inc. (OTC: DZSI) a developer of Networking and Connectivity systems and Cloud Edge software solutions enabling broadband everywhere.
DZS, the DZS logo, and all DZS product names are trademarks of DZS Inc. Other brand and product names are trademarks of their respective holders. Specifications, products, and/or product names are all subject to change.
This press release contains forward-looking statements regarding future events and our future results that are subject to the safe harbors created under the Private Securities Litigation Reform Act of 1995. These statements reflect the beliefs and assumptions of the Company’s management as of the date hereof. Words such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “forecast,” “goal,” “intend,” “may,” “plan,” “project,” “seek,” “should,” “target,” “will,” “would,” variations of such words, and similar expressions are intended to identify forward-looking statements. Readers are cautioned that these forward-looking statements are only predictions and are subject to risks, uncertainties and assumptions that are difficult to predict. The Company’s actual results could differ materially and adversely from those expressed in or contemplated by the forward-looking statements. Factors that could cause actual results to differ include, but are not limited to, those risk factors contained in the Company’s SEC filings available at www.sec.gov, including without limitation, the Company’s annual report on Form 10-K, quarterly reports on Form 10-Q and subsequent filings. In addition, additional or unforeseen effects from the COVID-19 pandemic and the global economic climate may give rise to or amplify many of these risks. Readers are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date on which they are made. DZS undertakes no obligation to update or revise any forward-looking statements for any reason.
About Lantronix
Lantronix Inc. is a global leader of compute and connectivity IoT solutions that target high-growth industries including Smart Cities, Automotive and Enterprise. Lantronix’s products and services empower companies to succeed in the growing IoT markets by delivering customizable solutions that address each layer of the IoT Stack. Lantronix’s leading-edge solutions include Intelligent Substations infrastructure, Infotainment systems and Video Surveillance, supplemented with advanced Out-of-Band Management (OOB) for Cloud and Edge Computing.
For more information, visit the Lantronix website.
For further information see: www.DZSi.com
DZS on Twitter: https://twitter.com/dzs_innovation
DZS on LinkedIn: https://www.linkedin.com/company/DZSi/
Investor Inquiries:
Geoff Burke, SVP Marketing and Investor Relations
Email: IR@dzsi.com
FAQ
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