DZS Sells Enterprise IoT Portfolio to Lantronix for $6.5 Million
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, $6.5 million transaction transfers the DZS portfolio of Industrial IoT solutions to Lantronix as well as the associated development, product and sales resources. The divestiture strengthens DZS’ balance sheet and enables the company to focus its development and sales resources on its core Networking, Connectivity and Cloud Edge Software portfolio.
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 $40M of cash and reduction in long-term debt.”
“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.”
