DZS to acquire NetComm Wireless for $7M, earn-out up to $3M, and $15M term loan

DZS INC.

Purchase price $7M at closing plus earn-out up to $3M based on 2024 revenue milestones starting at $72.5M and up to $1.5M for finished goods.
DZS to enter $15M three-year term loan with Swervo Consulting (EdgeCo affiliate); warrants to be issued.
NetComm has ~50 CSP customers including UScellular, Bell Canada, Vodafone, Telstra; ~60% of employees are R&D/customer care.
Transaction expected to close Q2 2024; target under external administration since March 2024.
Combined portfolio expands DZS in fiber extension, FWA, WiFi 7, IIoT; DZS to have ~550 employees globally.

Key facts

Extracted from this filing and checked against the source text.

Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.9

DZS INC. entered into Share Purchase Agreement with Casa Communications Holdings Pty Ltd (Administrators Appointed) valued at USD $7,000,000 (effective 2024-05-03).

Action: entry
Agreement: asset purchase
Counterparty: Casa Communications Holdings Pty Ltd (Administrators Appointed)
Value: USD $7,000,000
Effective: 2024-05-03

Exact text from the filing

On May 3, 2024, DZS Inc., a Delaware corporation (the “ Company ”), entered into a Share Purchase Agreement (the “ Share Purchase Agreement ”) with Casa Communications Holdings Pty Ltd (Administrators Appointed) ACN 632 732 659, a private limited company registered in New South Wales, Australia (the “ Seller ”).

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292 material agreements filed in the last 30 days. Browse all material agreements →

Source: SEC EDGAR

accession 0001101680-24-000048

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