DZS (Nasdaq: DZSI), a global leader of broadband networking and
software-defined cloud solutions, today announced a binding
agreement to acquire NetComm Wireless Pty Ltd. (NetComm).
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 networking and cloud software solutions will create one
of the world’s most comprehensive and technologically advanced last
mile broadband access portfolios. NetComm has approximately 50
active communications service provider (CSP) and enterprise
customers in the United States, Canada, Latin America, Europe,
Australia and New Zealand. In addition to the substantial
technology synergies, DZS will on-board the majority of the NetComm
employees, of which, approximately 60% are research &
development and customer care team members.
NetComm has a long history of innovation in developing
differentiated broadband access technology with a focus on quality,
performance and operational simplicity including self-install
capabilities. The transaction is expected to close during the
second quarter of 2024. Among active NetComm customers are numerous
large scale CSPs such as UScellular (the fourth-largest
full-service wireless carrier in the United States), Bell Canada
(Canada’s largest telecom company), Vodafone (one of the world’s
largest telecom operators), Telstra (Australia’s largest telecom
company), Aussie Broadband (Australia’s fourth-largest ISP) and
More Telecom (fast-growing Australian ISP), all of which have been
previously disclosed.
“The acquisition of NetComm underscores our commitment to
innovation at the network edge and further aligns with our vision
and strategy of becoming the premier technology leader in broadband
networking and cloud software management solutions,” said Charlie
Vogt, President and CEO, DZS. “While we are technology evangelists
for broadband everywhere 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 the markets they serve. With the
addition of NetComm’s fiber extension, fixed wireless, WiFi 7 home
broadband and industrial IOT products, the expanded DZS portfolio
arguably will represent one of the most complete and
technologically advanced open and standards-based broadband
networking and cloud management software portfolios in the world
and be uniquely aligned with the breadth of CSP needs and
architectures. We are especially enthusiastic about the new team
members that will be joining DZS upon completion of the transaction
and the opportunity to align and earn future business with
NetComm’s long-standing and loyal customers.”
NetComm, founded in 1982, is a leading broadband networking
innovator in the 5G fixed wireless, home broadband, fiber-extension
and IoT technology domains. NetComm Wireless 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 at closing for NetComm, including its intellectual
property and inventory. 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 earn-out of up to $3 million dollars
if 2024 revenue of $87.5 million is achieved with such earn-out
structure beginning at $72.5 million of 2024 net revenue.
NetComm’s technology portfolio will complement DZS’ leading-edge
Optical, Access, Subscriber, and Cloud Edge portfolio, enabling the
company to deliver a highly differentiated broadband offering and
experience designed to exceed the growing demand for “broadband
everywhere.”
NetComm’s Product Portfolio:
- Fiber Extension: Delivers fiber-equivalent
gigabit broadband speeds leveraging Gfast technology over copper
and coaxial cable
- Fixed Wireless Access (FWA): Provides
fiber-equivalent gigabit broadband via 4G/5G millimeter wave
technology
- Home Broadband: Enables WiFi 6/6E/7 in-home
coverage at gigabit broadband speeds
- Industrial IoT: Delivers networking
connectivity leveraging 4G/5G wireless and WiFi technologies
“NetComm’s cutting-edge fixed and mobile
subscriber access technologies and marquee customers spanning
Australia, New Zealand, North America and Europe will bolster DZS’
broadband networking and cloud software portfolio,” said Steve
Collins, CEO, NetComm. “Getting to know Charlie, his team and the
DZS products and customers has assured us that the combination of
technology, culture, customers, suppliers and employees is an ideal
fit to continue the innovation and product excellence NetComm has
cultivated over the last 40 years.”
“We are pleased to continue our relationship with NetComm to
ensure our home and business internet customers have fast and
reliable connectivity with an easy-to-install solution,” said Eric
Jagher, Senior Vice President and Chief Marketing Officer,
UScellular. “We are also excited about the expertise DZS brings,
and we look forward to working with them to drive further
innovation and provide an even greater experience for our
customers.”
“DZS has a strong commitment to delivering innovative and
high-quality solutions,” said Crystal Dowds, Vice President of
Architecture, Engineering and Technology, Lumen. “Their proactive
approach to meeting customer needs and timelines is enhanced by
their focus on the last mile and continually improving the customer
experience. DZS’ dedication to innovation makes them an
ideal company to acquire NetComm.”
“More Telecom has a valued and longstanding relationship with
NetComm,” said Andy Branson, CEO, More Telecom. “We are excited to
see this combination occur. The NetComm acquisition by DZS will
strengthen our partnership, enhance technology synergies, and
create additional opportunities for collaboration, especially as
More Telecom continues to deliver on our commitment to offer
broadband services across Australia.”
Conference Call Details:DZS will host an
investor call to discuss the transaction on Tuesday, May 7th at 4pm
CST. Dial-in details for the call are as follows:
Dial-In: (866) 652-5200Webcast:
https://edge.media-server.com/mmc/p/rzhveqbg/
Please ask to join the DZS Business Update Call.
About DZS Inc.
DZS Inc. (Nasdaq: DZSI) is a global leader of broadband
networking and software-defined cloud software solutions.
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.
For further information see: www.DZSi.com.DZS on Twitter:
https://twitter.com/dzs_innovationDZS on LinkedIn:
https://www.linkedin.com/company/DZSi/
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. methodology supports the unique
requirements of leading telecommunications carriers, core network
providers, system integrators, government and enterprise customers
worldwide.
For over 40 years, NetComm Wireless has engineered new
generations of world first data communication products and is now a
globally recognized communications technology innovator. NetComm is
headquartered in Sydney (Australia).
Investor Inquiries:Ted Moreau, Vice President,
Investor RelationsEmail: IR@dzsi.com
Press Inquiries:Kenny Vesey, Thatcher+Co.Phone:
+1 973.518.3644Email: kvesey@thatcherandco.com
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