DALLAS—DZS, a provider of access networking and cloud software platforms, has signed a definitive agreement to acquire core assets of Adaptive Spectrum and Signal Alignment, Inc. (ASSIA), an provider of broadband access quality-of-experience solutions.
These assets include the CloudCheck WiFi experience management and Expresse access network optimization solutions deployed by leading tier 1 operators globally. The acquired software solutions will add data analytics and network intelligence capabilities to DZS Cloud, including managed WiFi solutions and access network optimization and intelligent automation tools.
As part of the deal, an experienced team of cloud and AI software engineers, architects and business leaders will join DZS’s staff.
“With over 125 million broadband and WiFi connections under contract, CloudCheck and Expresse will elevate the DZS Cloud platform and expand our customer base to include marquee brands such as Bouygues Telecom, Deutsche Telekom, Liberty Latin America, Lumen, TalkTalk Group, Telefonica, TELUS and approximately 60 other notable service providers around the world,” said Charlie Vogt, president and CEO of DZS. “The expansion of the DZS Xperience software suite with CloudCheck and Expresse, combined with our existing DZS Cloud service orchestration and network automation offerings that are the basis of the new DZS Xtreme software suite, distinguish DZS Cloud as one of the industry’s most comprehensive service and consumer-experience-management software platforms with a unique value proposition for multi-vendor service provider network environments.”
“The CloudCheck and Expresse addition to the DZS convergent and transformational portfolio of broadband-connectivity, mobile, optical-edge and network orchestration solutions will create an enviable end-to-end portfolio of access networking, in-home WiFi and cloud native software solutions. These will further enhance connectivity, proliferate adaptive network-performance optimization and increase the levels of scalable support provided to ASSIA’s existing customers operational efficiency and as well for the many other customers of DZS,” said John Cioffi, ASSIA CEO and Chairman. “The DZS global deployed base of over 20 million ONTs, access points, gateways and subscriber devices will readily incorporate Expresse and CloudCheck. I am proud of ASSIA’s exceptionally talented employees for the many technological advancements and milestones achieved over the years and look to assist those who will follow their next chapter of success at DZS.”
CloudCheck will become the DZS consumer management platform, optimizing WiFi performance and providing consumers with a menu of capabilities including parental controls, network performance analytics, security protection and a roadmap of new in-home services.
The acquisition will augment the DZS customer footprint with major service providers from around the world. Customers include Deutsche Telekom AG, Telefonica SA, Bouygues Telecom, Liberty Latin America, Lumen, Magyar Telekom, Oi, Orange Poland, SFR, Sky Telecom Group, Swisscom AG, TalkTalk PLC and Verizon, among others.
The newly acquired customer relationships represent over 125 million broadband and WiFi connections. The Expresse and CloudCheck solutions support over 150 unique residential gateways from a wide array of equipment suppliers, further extending the DZS commitment to open standards and interoperability.
The deal is expected to close during Q2; the acquisition will be accretive to DZS adjusted gross margin, adjusted EBITDA margin and non-GAAP EPS, DZS said.
