---
schema_version: "secwatch.filing_event.v1"
accession: "0001101680-24-000168"
form_type: "8-K"
ticker: null
cik: "0001101680"
company_name: "DZS INC."
filed_at: "2024-10-29T23:59:59+00:00"
generated_at: "2026-05-30T08:52:26.149157+00:00"
event_type: "m_and_a"
sentiment: "neutral"
materiality_score: 0.7
calibrated_materiality_score: 0.7
confidence: "high"
source: SEC EDGAR
---

# DZS closes sale of Network Assurance software portfolio to AXON for $34M

## Summary
- 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.

## SEC filing metadata
- accession: 0001101680-24-000168
- form_type: 8-K
- cik: 0001101680
- company_name: DZS INC.
- filed_at: 2024-10-29T23:59:59+00:00
- event_type: m_and_a
- sentiment: neutral
- materiality_score: 0.7
- calibrated_materiality_score: 0.7
- confidence: high
- sec_items: 2.01, 9.01
- EDGAR index: https://www.sec.gov/Archives/edgar/data/1101680/000110168024000168/0001101680-24-000168-index.htm
- EDGAR primary document: https://www.sec.gov/Archives/edgar/data/1101680/000110168024000168/dzsi-20241025.htm

## Machine-readable alternates
- HTML: https://secwatch.observer/filing/0001101680-24-000168
- JSON: https://secwatch.observer/filing/0001101680-24-000168.json
- Plain text: https://secwatch.observer/filing/0001101680-24-000168.txt

## Key facts
- M&A Transactions
  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
  source text: 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.
  evidence_url: https://www.sec.gov/Archives/edgar/data/1101680/000110168024000168/0001101680-24-000168-index.htm

This AI-assisted summary is a reading aid. Review the linked SEC EDGAR filing before relying on any specific claim.