NetComm subscriber access portfolio to enhance and accelerate DZS’ portfolio of broadband networks and cloud software and add key customers in North America, Europe, Australia and New Zealand
DALLAS, May 06, 2024 (GLOBE NEWSWIRE) — DZS (Nasdaq: DZSI), a global leader in broadband networking and software-defined cloud solutions, today announced a binding agreement to acquire NetComm Wireless Pty Ltd.
The acquisition of NetComm’s fiber extension, fixed wireless access (FWA), home broadband and industrial Internet of Things (IoT) products and patents, combined with DZS’ category defining broadband networks and software solutions in cloud, will create one of the most comprehensive and technologically advanced solutions in the world. last-mile broadband access portfolios. NetComm has approximately 50 active communications service providers (CSP) and enterprise customers in the United States, Canada, Latin America, Europe, Australia and New Zealand. In addition to substantial technological synergies, DZS will integrate the majority of NetComm’s employees, approximately 60% of whom are members of the research and development and customer service team.
NetComm has a long history of innovation in developing differentiated broadband access technology with a focus on quality, performance and operational simplicity, including self-installation capabilities. The transaction is expected to close during the second quarter of 2024. NetComm’s active customers include several large-scale CSPs such as UScellular (the fourth-largest full-service wireless carrier in the United States), Bell Canada (the largest Canadian telecommunications company), Vodafone (one of the largest telecommunications operators in the world), Telstra (Australia’s largest telecommunications company), Aussie Broadband (Australia’s fourth largest ISP) and More Telecom (fast-growing Australian ISP) , all previously disclosed.
“The acquisition of NetComm underscores our commitment to innovation at the network edge and further aligns with our vision and strategy to become the premier technology leader in broadband networking and cloud software management solutions,” said Charlie Vogt , president and CEO of DZS. “While we are evangelists for broadband-everywhere technology and fiber-first architectures, fixed and mobile service providers will continue to evolve their networks and leverage a variety of technologies that best fit the geography, topology and economics of their customers. markets they serve. With the addition of NetComm’s fiber span, fixed wireless, WiFi 7 home broadband and industrial IoT products, the expanded DZS portfolio will undoubtedly represent one of the most technologically open and open broadband network and cloud management software portfolios. complete and technologically advanced systems in the world. and be uniquely aligned with the breadth of CSP needs and architectures. We are especially excited about the new team members who will join DZS upon completion of the transaction and the opportunity to align and win future business with NetComm’s long-standing and loyal customers.”
NetComm, founded in 1982, is a leading broadband networking innovator in the domains of 5G fixed wireless technology, home broadband, fiber extension and IoT technology. NetComm Wireless was traded on the Australian Stock Exchange until Casa Systems acquired the company in 2019. Under the terms of the acquisition agreement, DZS will pay $7 million upon closing for NetComm, including its intellectual property and stock. With the addition of NetComm employees, DZS is expected to have approximately 550 team members serving the Americas, EMEA, Australia and New Zealand markets. The purchase price includes an additional earnout of up to $3 million dollars if 2024 revenue of $87.5 million is achieved, with this earnout structure starting at $72.5 million of 2024 net revenue.
NetComm’s technology portfolio will complement DZS’ cutting-edge Optical, Access, Subscriber and Cloud Edge portfolio, enabling the company to provide a highly differentiated broadband offering and experience designed to overcome the growing demand for “broadband” everywhere”.
NetComm Product Portfolio:
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Fiber Extension: Delivers fiber-equivalent gigabit broadband speeds leveraging Gfast technology over copper and coaxial cable
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Fixed Wireless Access (FWA): Provides fiber-equivalent gigabit broadband via 4G/5G millimeter wave technology
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Home Broadband: Enables WiFi 6/6E/7 home coverage at gigabit broadband speeds
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Industrial IoT: Provides network connectivity leveraging 4G/5G wireless and WiFi technologies
“NetComm’s cutting-edge fixed and mobile subscriber access technologies and key customers spanning Australia, New Zealand, North America and Europe will bolster DZS’ portfolio of broadband networks and cloud software,” said Steve Collins, CEO from NetComm. “Knowing Charlie, his team, and DZS products and customers assured us that the combination of technology, culture, customers, suppliers and employees is ideal to continue the innovation and product excellence that NetComm has cultivated over the past 40 years. ”
“We are pleased to continue our relationship with NetComm to ensure our home and business Internet customers have fast, reliable connectivity with an easy-to-install solution,” said Eric Jagher, senior vice president and chief marketing officer at UScelular. “We are also excited about the expertise that DZS brings and look forward to working with them to further drive innovation and provide an even better experience for our customers.”
“DZS has a strong commitment to providing innovative, high-quality solutions,” said Crystal Dowds, vice president of architecture, engineering and technology at Lumen. “Their proactive approach to meeting customer needs and deadlines is enhanced by a focus on the last mile and continually improving the customer experience. DZS’ dedication to innovation makes it an ideal company to acquire NetComm.”
“More Telecom has a valued and long-standing relationship with NetComm,” said Andy Branson, CEO of More Telecom. “We are excited to see this combination occur. DZS’ acquisition of NetComm will strengthen our partnership, increase technology synergies and create additional opportunities for collaboration, especially as More Telecom continues to deliver on our commitment to delivering broadband services across Australia.”
Conference call details:
DZS will hold a conference call with investors to discuss the transaction on Tuesday, May 7th at 4pm CST. The dialing details for the call are as follows:
Call: (866) 652-5200
Webcast: https://edge.media-server.com/mmc/p/rzhveqbg/
Please ask to join the DZS business update call.
About DZS Inc.
(Nasdaq: DZSI) is a global leader in broadband networking and software-defined cloud software solutions.
DZS, the DZS logo and all DZS product names are registered trademarks of DZS Inc. Other brands and product names are registered trademarks of their respective holders. Specifications, products and/or product names are subject to change.
This press release contains forward-looking statements about 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 like “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “predict,” “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 predictions only and are subject to risks, uncertainties and assumptions that are difficult to predict. The Company’s actual results may differ materially and adversely from those expressed or contemplated by the forward-looking statements. Factors that could cause actual results to differ include, but are not limited to, the 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. Furthermore, additional or unanticipated effects of 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 they are made. DZS undertakes no obligation to update or revise any forward-looking statements for any reason.
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About NetComm Wireless
NetComm Wireless Limited is a leading developer of fixed wireless access, home broadband, industrial IoT and fiber extension technologies that underpin an increasingly connected world. Our Listen. Innovate. Solve. The methodology meets the unique requirements of leading telecommunications operators, core network providers, systems integrators, government and enterprise customers around the world.
For more than 40 years, NetComm Wireless has engineered new generations of the world’s first data communications products and is now a globally recognized communications technology innovator. NetComm is headquartered in Sydney (Australia).
Investor Inquiries:
Ted Moreau, Vice President of Investor Relations
Email: IR@dzsi.com
Press inquiries:
Kenny Vesey, Thatcher+Co.
Telephone: +1 973.518.3644
Email: kvesey@thatcherandco.com
