2024-11-08 20:21:00
- Expanding Lantronix IoT Wireless Connect Portfolio with Cutting-Edge 5G Technology
- Strengthening the Competitive Offer, Addition of New Blue-Chip Customers
IRVINE, Calif., Nov. 08, 2024 (GLOBE NEWSWIRE) — A Lantronix Inc. (NASDAQ: LTRX), a global leader in IoT computing and IoT connectivity solutions, today announced that it has signed a definitive agreement to acquire NetComm Wireless Pty Ltd (“NetComm”), a subsidiary of DZS, Inc., all of the unit’s assets of Internet of Things (IoT) for $6.5 million in cash, and assuming certain responsibilities. The acquisition complements Lantronix’s focus on the Enterprise and Smart City vertical markets and expands its next-generation 5G capabilities.
“The strategic acquisition of Netcomm’s IoT portfolio strengthens our Compute and Connect offerings, providing our customers with cutting-edge IoT solutions,” said Saleel Awsare, president and CEO of Lantronix. “The acquisition expands our portfolio of Gateways, Routers and Modems, including the latest 5G products, enhancing our Edge Compute solutions. It also adds new blue-chip enterprise customers for additional cross-selling opportunities, opening up new opportunities for our products in unserved, target-rich geographic markets such as Australia and New Zealand.”
The closing of the acquisition is subject to certain conditions. Lantronix anticipates closing the transaction in the second quarter of fiscal 2025. Lantronix expects that upon closing, the acquisition will be accretive and accelerate the company’s strategic focus on innovative Industrial IoT solutions at scale. By integrating this new IoT portfolio, Lantronix will enhance its connectivity solutions in mission-critical areas such as critical infrastructure, asset monitoring and telecommunications.
At the heart of this acquisition are 4G and 5G solutions that enable ultra-fast Ethernet-to-Cellular and Wi-Fi® connectivity for machines in the most demanding environments. Designed for industries that require robust, reliable connectivity, these products offer low-latency performance and superior remote management capabilities. Some of the world’s most prominent companies trust this IoT suite. Lantronix expects DSZ’s portfolio of NetComm Companies to generate revenue between $6 and $7 million in the year 2024.
About Lantronix
Lantronix Inc. is a global leader of IoT computing and connectivity solutions targeting high-growth industries including Smart Cities, Automotive and Enterprise. Lantronix products and services empower companies to succeed in growing IoT markets by providing customizable solutions that address every layer of the IoT stack. Lantronix’s cutting-edge solutions include Smart Substation infrastructure, Infotainment and Video Surveillance systems, complemented with advanced Out-of-Band Management (OOB) for Cloud and Edge Computing.
For more information, visit the website Lantronix.
This press release contains forward-looking statements, including statements regarding our expectations regarding the benefits of our acquisition of DSZ’s NetComm enterprise IoT portfolio, such as strengthening our competitive offering by bringing new blue chip names to our customer base and unlocking growth opportunities for our IoT customers, as well as the anticipated completion of the proposed acquisition or timing thereof and the aggregate nature of the proposed acquisition. Forward-looking statements are intended to meet the safe harbor requirements of the Private Securities Litigation Reform Act of 1995. Our forward-looking statements are based on our current expectations and projections about trends that may affect our business and the industry, and other future events. Although we make forward-looking statements only when we believe we have a reasonable basis for doing so, we cannot guarantee their accuracy. Forward-looking statements are subject to substantial risks and uncertainties that could cause our results or experience, or future business, financial condition or results or performance of operations, to be materially different from our historical results, expressed or implied, in any forward-looking statement. forecast contained in this press release. Other factors that could have a material adverse effect on our operations and future prospects or that could cause actual results to differ materially from our expectations include, but are not limited to: the ability to complete the proposed acquisition on the anticipated terms and schedule; our ability to successfully integrate acquired assets post-closing and realize anticipated benefits therefrom; the possibility that various closing conditions to the acquisition may not be satisfied or waived; risks related to any unforeseen liabilities assumed with the acquired assets; the effects of negative or worse regional and global economic conditions or market instability on our business, including effects on our customers’ purchasing decisions; our ability to mitigate any disruptions to our and our suppliers’ supply chains due to the COVID-19 pandemic or other outbreaks, recent wars and conflicts in Europe, Asia and the Middle East, hostilities in the Red Sea, or other causes; our ability to successfully convert our current order backlog and demand; our ability to successfully implement our acquisition strategy or integration of acquired companies; uncertainty regarding the future profitability of acquired businesses, and delays in carrying out, or failure to carry out, any incremental acquisition transactions; acquisition, management and integration of new operations, businesses or assets, and the associated diversion of management attention or other related costs or difficulties; our ability to continue to generate revenue from products sold in mature markets; our ability to develop, market and sell new products; our ability to be successful with our new software offerings; fluctuations in our revenue due to the timing of orders from certain project-based customers; unpredictable timing of our revenues due to the long sales cycle of our products and services, and possible delays in customers completing projects; our ability to accurately forecast future demand for our products; delays in qualified reviews of existing products; restrictions or delays in the supply of, or quality control problems with, certain materials or components; difficulties associated with the delivery, quality or cost of our products from our contract manufacturers or suppliers; risks related to the outsourcing of manufacturing and international operations; difficulties associated with our distributors or resellers; intense competition in our sector and resulting downward pressure on prices; increases in inventory levels and inventory obsolescence; undetected software or hardware errors or defects in our products; cybersecurity risks; our ability to obtain appropriate industry certifications or approvals from government regulatory bodies; changes in applicable U.S. government and foreign laws, regulations and tariffs; our ability to protect patents and other proprietary rights and prevent infringement of the proprietary technology rights of others; issues related to the stability of our financial and banking institutions and relationships; level of our indebtedness, our ability to service our indebtedness and the restrictions of our debt agreements; impact of rising interest rates; our ability to attract and retain qualified management; and any additional factors included in our Annual Report on Form 10-K for the fiscal year ended June 30, 2024, filed with the Securities and Exchange Commission (the “SEC”) on September 9, 2024, including in the section titled “Factors of Risk” in Item 1A of Part I of this report; and in our other public filings with the SEC. In addition, actual results may differ due to additional risks and uncertainties that are not currently known to us or that are not considered material to our business. Due to all of this, investors should not place undue reliance on any forward-looking statements. The forward-looking statements we make speak only as of the date they are made. We expressly disclaim any intention or obligation to update any forward-looking statements as of today’s date to conform such statements to actual results or changes in our opinion or expectations, except as required by law or the rules of Nasdaq Stock Market, LLC. If we make any updates or corrections to any forward-looking statements, investors should not infer that we will make any other updates or corrections in the future.© 2024 Lantronix, Inc. All rights reserved. Lantronix is a registered trademark. All other trademarks are the property of their respective owners.
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About DZS Inc.
DZS Inc. is a global leader in broadband network solutions, providing innovative products and services that empower communication services providers with the tools they need to deliver superior connectivity and advanced services. Their suite of offerings includes high-performance access and transport solutions, alongside cloud software and managed services that cater to the evolving demands of connected users and enterprises.
This acquisition is part of Lantronix’s broader strategy to enhance its IoT product offerings and expand its global reach, particularly in strategically important markets such as Australia and New Zealand. By leveraging NetComm’s established presence and customer base, Lantronix aims to drive growth and capitalize on emerging opportunities in the rapidly evolving IoT landscape.
For more updates and to stay informed on the latest developments at Lantronix, please visit our website and follow us on our social media channels.
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*p.s. Investors should be advised to perform thorough due diligence and consult with financial advisors before making investment decisions based on the forward-looking statements provided in this release.*
