Sydney, February 22nd 2019: NetComm will take the development of its world leading 5G Fixed Wireless Self-Install technology to a new level following its proposed acquisition by Casa Systems in an all-cash deal valuing the company at around A$161 million.
Following the deal announced to the Australian Securities Exchange this morning there will be no immediate change to the way NetComm operates as it continues to offer its global development of solutions that effectively solve operators’ unique connectivity challenges.
Under the Scheme, NetComm shareholders will receive cash consideration of A$1.10 per NetComm ordinary share (Scheme Consideration) and NetComm will become a wholly-owned subsidiary of Casa Systems.
The deal still requires approval from NetComm shareholders as well as the Foreign Investment Review Board but is unanimously recommended by NetComm Directors and is expected to be completed in June.
The announcement of the potential deal comes soon after NetComm’s announcement on January 30th that it had developed world-leading 5G Fixed Wireless Self-Install technology that will slash the cost of connecting end-users to 5G Fixed Wireless.
NetComm will publicly demonstrate its 5G Fixed Wireless Self-Install technology for the first time at Mobile World Congress (MWC) next week with the technology not only attracting interest from Casa Systems, but also from leading operators from around the global market.
Interim NetComm CEO, Steve Collins said:
“This deal is a clear show of confidence in the market-leading technologies that NetComm has developed in both the Fixed Wireless and Fixed Broadband sectors.
“Casa Systems have said that they are particularly impressed by our 5G Fixed Wireless Self-Install technology which they say complements their existing technology platform very well.
“The addition of our world-leading 5G Customer Premises Equipment technologies to their platform will enable a full end-to-end solution for operators looking to deploy 5G Fixed Wireless services.
“The two companies have great cultural alignment and our complementary product portfolios will help us meet the growing demand for increased bandwidth by communications service providers around the world.”
On announcing the proposed deal, Casa Systems Chairman and CEO, Jerry Guo, said:
“NetComm represents a strong strategic fit for Casa Systems. NetComm is an innovative and agile organisation that has led the global development of fixed wireless and distribution point broadband solutions.
“We believe that this transaction will create a global leader in the rapidly growing broadband enablement space for service providers across all access technologies.
“This deal positions the combined company with a broad, highly competitive product portfolio for new 4G architectures and 5G wireless, it adds fixed wireless products to our portfolio, enabling us to address the large 5G fixed wireless access market.”
NetComm CEO Change
As separately announced today, Ken Sheridan has stepped aside from the role of Managing Director & CEO of NetComm with immediate effect due to personal issues but will continue as an Executive Director on NetComm’s Board.
Having been responsible for NetComm’s strategic technical direction, product innovation, and design for nine years, and being well known to NetComm’s shareholders and customers, Chief Technology Officer Steve Collins has been appointed Interim CEO.
NetComm (ASX: NTC) is a global developer of solutions that bridge the gap between fibre and the home, device or machine. In a world where everyone’s connected life matters, Fixed Wireless broadband, wireless M2M/Industrial IoT and Fibre to the distribution point (FTTdp) solutions are specially engineered for challenging deployments. At NetComm we understand that no one-solution fits all. Every operator, carrier and enterprise is different, so we build the right VDSL, Gfast, 4G and 5G solution to meet specific network, market and geographic conditions worldwide. Established in 1982, NetComm is a globally renowned innovator of world-first data communications technologies.