Lantronix Acquires DZS's NetComm Wireless For $6.5 Mln Cash

Lantronix

3.02 USD -3.36%

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(RTTNews) - Lantronix, Inc. (LTRX), a provider of compute and connectivity IoT solutions, Thursday said it has completed its acquisition of NetComm Wireless Pty Ltd, which is a subsidiary of DZS Inc.,(DZSI). The deal, valued at $6.5 million in cash, included all of DZS' enterprise Internet of Things business assets, along with the assumption of certain liabilities.

With this acquisition, Lantronix aims to strengthen its connectivity solutions for essential areas like infrastructure, asset monitoring, and telecommunications. It will also focus on Enterprise and Smart City markets and sees opportunities to grow its next-generation 5G capabilities.

Following the deal, Lantronix centers on solutions that provide ultra-fast Ethernet-to-Cellular and Wi-Fi connectivity for machines in tough environments. Built for industries needing strong and reliable connections, these products offer low-latency performance and remote management.

It is anticipated that NetComm enterprise portfolio from DZS will bring in $6 million to $7 million in revenue in 2024.

On Tuesday, LTRX had closed trading 0.27% higher at $3.78 on the Nasdaq. In the pre-market trading, LTRX is trading 0.79% further high at $3.81.

On Tuesday, DZSI had closed trading 8.33% higher at $0.78.