Communications Systems, Inc. Acquires Ecessa Corporation
May 14 2020 - 8:20AM
Business Wire
Acquisition strengthens IoT intelligent edge
services and offerings
Communications Systems, Inc. (NASDAQ: JCS) (“CSI” or the
“Company”), an IoT intelligent edge products and services company,
today announced that it has completed the acquisition of
privately-held Ecessa Corporation (“Ecessa”).
Based in Plymouth, MN, Ecessa designs and distributes
software-defined wide area networking (SD-WAN) solutions for
businesses through the deployment of over 10,000 field
installations (since 2002) of Ecessa Edge®, PowerLink®, and
WANworX® controllers.
Roger Lacey, CEO of CSI noted, “Ecessa fits perfectly with our
vision of becoming a leading provider of IoT intelligent edge
products and services. Once fully integrated, Ecessa’s acquisition
will provide greater sales opportunities to expand our services
platform and offer cost synergies by complementing the existing
network of products and services of JDL and Net2Edge. As our
industry continues to evolve, we remain committed to innovations
and are constantly looking for opportunities that will deliver the
right services to our clients.”
Mr. Lacey added, “Our healthy balance sheet and strong cash
position support our 2020 growth strategy of focusing on high
margin / recurring sales business models where ‘software as a
service’ becomes an increasing proportion of future revenue. As our
team continues to develop easy-to-use / easy-to-integrate
applications and services, we are working to develop an ecosystem
of partnerships and at the same time seeking additional attractive
acquisitions/merger opportunities.”
Mike Siegler, who has been serving as CEO of Ecessa, will
continue leading that group and also serve as a General Manager for
CSI. Mr. Siegler added, “This merger enables Ecessa to build on an
18-year track record of providing industry leading customer support
and innovative network products in the IT infrastructure space.
Serving the SD-WAN market, we have seen the network edge rapidly
change, becoming more intelligent and more critical to everyday
business. With CSI, we have more of the technology customers are
looking for, more sales channels to engage with, and more global
reach and support capabilities. CSI and Ecessa are truly stronger,
together. Our customers will experience that on day one.”
Advisors
Northland Capital Markets served as financial advisor to CSI in
connection with the transaction and Ballard Spahr LLP acted as
legal counsel to CSI. Fredrickson & Byron, PA acted as legal
counsel to Ecessa.
Additional Information
Communications Systems, Inc. will provide additional information
about the transaction and Ecessa’s operations in future Form 8-K
and Form 10-Q filings with the Securities and Exchange
Commission.
About Communications Systems
Communications Systems, Inc., an IoT intelligent edge products
and services company, provides connectivity infrastructure and
services for global deployments of broadband networks. Focusing on
innovative, cost-effective solutions, CSI provides customers the
ability to deliver, manage, and optimize their broadband network
services and architecture. From the integration of fiber optics in
any application and environment to efficient home voice and data
deployments to optimization of data and application access, CSI
provides tools for maximum utilization of the network from the edge
to the user. With partners and customers in over 50 countries, CSI
has built a reputation as a reliable global innovator focusing on
quality and customer service. CSI operates three business units:
Transition Networks, Net2Edge and JDL Technologies. For more
information visit: commsysinc.com.
About Ecessa Corporation
Ecessa Corporation, recognized
by Gartner as a vendor of note, manufactures and distributes
software-defined wide area networking (SD-WAN) solutions for
business. Since 2002, the company has deployed over 10,000 field
installations of Ecessa Edge®, PowerLink®, and WANworX® controllers
and enabled organizations of all sizes to reliably run Internet and
cloud-based applications, connect offices worldwide and distribute
traffic among a fabric of multiple, diverse ISP links, ensuring
business continuity by removing bottlenecks and eliminating network
downtime. These capabilities optimize Never Down® performance of
business-critical applications, aid in lowering IT costs, and make
it easier to provision, maintain and support business networks and
the applications that run over them. For more information about
Ecessa and its SD-WAN products, visit www.ecessa.com.
Forward Looking Statement
This press release includes certain forward-looking statements
within the meaning of the Private Securities Litigation Reform Act
of 1995, including statements regarding future financial
performance, future growth and future acquisitions or partnerships.
These statements are based on Communications Systems’ current
expectations or beliefs and are subject to uncertainty and changes
in circumstances. Actual results may vary materially from those
expressed or implied by the statements here due to changes in
economic, business, competitive or regulatory factors, and other
risks and uncertainties affecting the operation of Communications
Systems’ business, as well as CSI’s ability to successfully and
profitability integrate Ecessa’s business into CSI’s operations.
These risks, uncertainties and contingencies are presented in the
Company’s Annual Report on Form 10-K and, from time to time, in the
Company’s other filings with the Securities and Exchange
Commission. The information set forth herein should be read in
light of these risks. Further, investors should keep in mind that
the Company’s financial results in any particular period may not be
indicative of future results. Communications Systems is under no
obligation to, and expressly disclaims any obligation to, update or
alter its forward-looking statements, whether as a result of new
information, future events, changes in assumptions or
otherwise.
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version on businesswire.com: https://www.businesswire.com/news/home/20200514005479/en/
Communications Systems, Inc. Mark D. Fandrich Chief
Financial Officer 952-582-6416 mark.fandrich@commsysinc.com
Roger H. D. Lacey Chief Executive Officer 952-996-1674
The Equity Group Inc. Lena Cati Vice President
212-836-9611 lcati@equityny.com
Devin Sullivan Senior Vice President 212-836-9608
dsullivan@equityny.com
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