Casa Systems (NASDAQ: CASSQ), a financially troubled telecom infrastructure provider, has sold NetComm Wireless Pty Ltd., to DZS Inc., a fiber networking and cloud software provider, based in Plano, TX. Under the terms of the acquisition, DZS will pay $7 million for the Australian concern’s fiber extension, fixed wireless access, home broadband and IoT products and patents, plus an additional $3 million if certain revenue goals are achieved. The transaction is expected to close during the second quarter of 2024.
NetComm has approximately 50 active communications service providers and enterprise customers in the United States, Canada, Latin America, Europe, Australia and New Zealand. Among active NetComm customers are CSPs, such as UScellular, Bell Canada, Vodafone, Telstra, and Aussie Broadband.
Early in April, Casa filed for relief under Chapter 11 of the Bankruptcy Code, after reporting a net loss of $25.6 million in the third quarter 2023. The company has sold its 5G mobile core and RAN businesses, which include its Axyom cloud native 5G core software and RAN Assets, to the Lumine Group. Casa also entered into a stalking-horse asset purchase agreement to sell its cable business to an affiliate of Vecima Networks, Inc., a provider of scalable software, services, and integrated technology platforms for broadband access, and content delivery.
“Like many in our sector, Casa has experienced a significant decline in revenue and profits due in large part to industry-wide downward capital investment and procurement trends in the cable and telco markets,” Michael Glickman, Casa CEO, said. “We also have incurred significant investments to bring our 5G mobile core and RAN products to market. We believe the sales of our businesses through a Chapter 11 process will maximize value, preserve jobs and minimize disruption for our customers.”
By J. Sharpe Smith, Inside Towers Technology Editor
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