Lantronix Reinforces IoT Leadership with Strategic Acquisition of NetComm's Enterprise IoT Portfolio
Deal News | Nov 08, 2024 | Globenewswire
Lantronix Inc., a global leader in IoT solutions, has signed a definitive agreement to acquire the IoT portfolio of NetComm, a subsidiary of DZS, Inc., for approximately $6.5 million and the assumption of certain debts. This acquisition positions Lantronix as a stronger player in the enterprise and smart urbanization verticals, expanding their 5G network solutions. The acquisition is contingent upon certain closure conditions, with expectations to finalize during the second quarter of Lantronix's fiscal year 2025. The integration of NetComm's IoT assets is anticipated to enhance Lantronix's offerings, providing next-generation 5G connectivity solutions and strengthening its market presence in Australia and New Zealand. The deal also paves the way for cross-selling opportunities with prestigious new clients, with earnings expected between $6 and $7 million in the 2024 calendar year. Lantronix's strategic direction is firmly set on innovative large-scale industrial IoT solutions, supported by a robust range of gateways, routers, and modems, designed for critical infrastructure markets requiring reliable, low-latency connectivity.
Sectors
- Internet of Things (IoT)
- Telecommunications
- Technology
Geography
- United States – Lantronix Inc. is based in Irvine, California, U.S.
- Australia – The acquisition of NetComm's IoT assets opens new market opportunities for Lantronix in Australia.
- New Zealand – The expansion into new markets through the acquisition includes New Zealand.
Industry
- Internet of Things (IoT) – The acquisition involves IoT assets, reflecting Lantronix's focus on enhancing their IoT connectivity and computing offerings.
- Telecommunications – The integration of advanced 5G technology and connectivity solutions positions Lantronix within the telecommunications industry.
- Technology – Lantronix's acquisition focuses on smart connectivity solutions, placing it firmly within the broader technology sector.
Financials
- $6.5 million – The purchase price for the IoT assets of NetComm.
- $6 to $7 million – Projected revenue for Lantronix in 2024 from the acquired portfolio.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Lantronix Inc. | Acquirer | Company | A global leader in IoT computing and connectivity solutions. |
| DZS Inc. | Seller | Company | Parent company of NetComm, selling its IoT portfolio to Lantronix. |
| NetComm Wireless Pty Ltd | Target | Company | A subsidiary of DZS, whose IoT portfolio is being acquired by Lantronix. |