DZS Buys Pieces of ASSIA

There was a bit of consolidation in the cloud software vendor space yesterday. DZS has announced an agreement to acquire specific core assets of Adaptive Spectrum and Signal Alignment, Inc. (ASSIA), expanding its own portfolio and talent pool inorganically.

The ASSIA assets in question include the CloudCheck customer experience management and Expresse access network optimization solutions, technologies deployed in some 125M homes already. These along with the teams that develop and support them will join DZS, adding data analytics and network intelligence to the DZS Cloud. They are also acquiring the Equipe and Commande products, but won’t tell us more about their plans for those until their investor day next week.

The deal follows a couple made last year in a similar vein, when DZS acquired Optelian and RIFT. DZS will also now have new or expanded relationships with the likes of Bouygues Telecom, Deutsche Telekom, Liberty Latin America, Lumen, TalkTalk Group, Telefónica and Telus. Meanwhile, Assia will focus on its remaining products, backed by patents and other IP.

If all goes according to plan, the deal will close later this quarter. It’s an all cash deal, and DZS expects it to be accretive to its adjusted gross margin, adjusted EBITDA, and non-GAAP EPS.

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Categories: Cloud Computing · FTTH · Mergers and Acquisitions · Software