DZS Broadband Announces Acquisition of NetComm Wireless
The deal is set to close in the second quarter of 2024.
WASHINGTON, May 6, 2024—DZS Broadband, a broadband networking and software cloud solutions company, on Monday announced an agreement to acquire NetComm Wireless.
DZS said that the deal will create an advanced last-mile broadband access portfolios in the world. They argue this will result from combining DZS' broadband networking and cloud software solutions with NetComm's fiber extension, fixed wireless access, home broadband and industrial Internet of Things products and patents.
About 50 communications service providers and enterprise clients in the U.S., Canada, Latin America, Europe, Australia, and New Zealand are served by NetComm. DZS will onboard most of the NetComm staff, of which about 60% are members of the customer care and research & development teams, the statement says.
It is anticipated that the deal would finalize in 2024's second quarter. DZS will purchase NetComm for $7 million upon close, including its inventory and intellectual property, the companies said.
Founded in 1982, NetComm is broadband networking company in fields of 5G fixed wireless, residential broadband, fiber-extension, and Internet of Things technologies.
If $87.5 million in revenue is realized in 2024, there is an additional earn-out of up to $3 million included in the purchase price. This earn-out mechanism starts at $72.5 million in 2024 net revenue, the companies said.
