DZS Completes Acquisition of Specific Core Assets of ASSIA

DZS has closed the acquisition of specific core assets of Adaptive Spectrum and Signal Alignment (ASSIA), an industry pioneer of broadband access quality-of-experience software solutions.

As part of the transaction, DZS has gained an elite team of highly skilled cloud and AI software engineers, architects and business leaders, as well as the Expresse service assurance and CloudCheck WiFi experience management solutions deployed by leading tier 1 operators globally. 

The acquired assets also include patents and patents pending related to the CloudCheck software portfolio. These software solutions add powerful data analytics and network intelligence capabilities to DZS Cloud, including cloud-managed WiFi solutions, access network optimization and intelligent automation tools.

As ultra-high bandwidth and experience-rich applications continue to emerge, traditional internet service providers will transform to become experience providers: enablers of high-value services supporting the emerging metaverse, on-line e-sports/gaming, telehealth, remote office, smart home management, virtual education and other services. There are very few companies that offer even a subset of what is comprised within DZS Cloud, and most are closed and proprietary. DZS Cloud offers communication service providers an end-to-end, open, cloud-native software platform that is interoperable with core access and optical infrastructure and more than 150 unique residential gateways and WiFi devices from a wide array of equipment suppliers. DZS gives service providers full control and visibility across the entire spectrum of services, from network orchestration to service assurance and in-home experience management.

The newly acquired homes being monitored and managed by Expresse and CloudCheck, combined with the existing DZS broadband and WiFi connected homes, creates a footprint of approximately 150 million homes. Customer reaction to the transaction has been very positive (previous news release announcing this acquisition), opening a broader opportunity for collaboration with the DZS market-leading access networking, mobile & optical edge and cloud native software solutions.

This all-cash acquisition expands the DZS Cloud platform’s recurring Software-as-a-Service (SaaS) revenue and will accelerate the previously stated DZS target margin expansion timeline. The acquisition is accretive to DZS adjusted gross margin, adjusted EBITDA margin and non-GAAP EPS. DZS will hold a special investor and analyst briefing today, Tuesday, May 31, 2022 at 3:30pm CST to review in more detail the specifics behind this transaction and to provide an updated DZS financial outlook.