DZS INC.: M&A transaction — DZS closes sale of Network Assurance software portfolio to AXON for $34M

DZS INC.

Cash consideration of $34M; $30M received at close, $4M deferred 12 months.
$15M of proceeds used to prepay EdgeCo loans, net of $6.6M write-off of unamortized debt discount.
Pro forma operating loss for H1 2024 widened to $30.8M vs historical $28.1M.
Pro forma net income from continuing operations of $4.9M for H1 2024 vs historical $9.5M.
Divestiture follows prior Asia business sale and NetComm acquisition in 2024.

item 2.01 item 9.01

Key facts

Extracted from this filing and checked against the source text.

M&A Transactions SEC 8-K Item 2.01/5.01 confidence 0.95

DZS INC. completed a disposition involving AXON Networks Inc. for $34,000,000 (closed 2024-10-25).

Action: disposition
Counterparty: AXON Networks Inc.
Consideration: $34,000,000
Closing: 2024-10-25

Exact text from the filing

On October 25, 2024, DZS Inc. (the “Company”) consummated the previously disclosed divestiture (the “Network Assurance Business Divestiture”) contemplated by the Asset Purchase Agreement, dated as of October 16, 2024 (the “Asset Purchase Agreement”), between the Company and AXON Networks Inc., a Delaware corporation (“Axon”). Pursuant to the Asset Purchase Agreement, the Company sold to Axon all of the Company’s Network Assurance and WiFi Management software portfolio for a purchase price of $34,000,000, subject to certain adjustments.

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Source: SEC EDGAR

accession 0001101680-24-000168

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