Lantronix, Inc. (LTRX), a provider of IoT solutions specializing in compute and connectivity, announced on Thursday that it has finalized the acquisition of NetComm Wireless Pty Ltd, a subsidiary of DZS Inc. (DZSI). This transaction, worth $6.5 million in cash, encompasses all enterprise Internet of Things business assets of DZS, along with certain liabilities.
Through this acquisition, Lantronix aims to bolster its connectivity offerings in key sectors such as infrastructure, asset monitoring, and telecommunications. Additionally, the company plans to target the Enterprise and Smart City markets and identify new growth opportunities for its next-generation 5G technologies.
Post-acquisition, Lantronix will focus on delivering solutions that offer ultra-fast Ethernet-to-Cellular and Wi-Fi connectivity, specifically designed for machines operating in challenging environments. These products are engineered for industries that require robust and dependable connections, providing low-latency performance and facilitating remote management.
It is projected that the NetComm enterprise portfolio from DZS will generate revenue ranging from $6 million to $7 million in 2024.
On Tuesday, shares of LTRX closed 0.27% higher at $3.78 on the Nasdaq. In pre-market trading, LTRX shares are up by 0.79%, trading at $3.81.
In the same trading session, DZSI shares rose by 8.33%, closing at $0.78.
