A Texan broadband access company has rescued Australian telco equipment provider NetComm Wireless from administration, pledging US$7 million (AU$10.6 million) to obtain the 40-year-old venture.
American firm DZS announced its takeover of NetComm Wireless on Monday, securing a future for the provider of 5G wireless, home broadband, fibre extension, modems, and Internet of Things (IoT) technology.
Sydney-based NetComm Wireless counts local telco giants like Telstra and Aussie Broadband among its customers, along with global players like Bell Canada and USCellular.
It was acquired by US-based Casa Systems for $161 million in 2019, but a failed divestment and operational challenges through late 2023 saw the venture flounder.
DZS, which focuses on fibre connections, says NetComm’s expertise in wireless connectivity will round out its offerings.
“While we are technology evangelists for broadband everywhere and fiber-first architectures, fixed and mobile service providers will continue to evolve their networks and leverage a variety of technologies that best fit the geography, topology, and economics of the markets they serve,” said Charlie Vogt, president and CEO of DZS.
Steve Collins, NetComm CEO, welcomed a deal pulling NetComm Wireless from collapse.
“Getting to know Charlie, his team and the DZS products and customers has assured us that the combination of technology, culture, customers, suppliers and employees is an ideal fit to continue the innovation and product excellence NetComm has cultivated over the last 40 years,” he said.
An additional US$3 million ($AU4.5 million) will be tacked onto the deal should NetComm reach revenue targets.
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Senior Business Journalist
Focused on the small business sector, David’s work covers the political, regulatory, and economic issues facing Australian entrepreneurs. Prior to joining SmartCompany, he was a reporter for Business Insider Australia. You can follow him on LinkedIn.
