Technology communications company Casa Systems has officially acquired telecommunications equipment company NetComm Wireless.
NetComm shareholders will receive A$1.10 per share.
The acquisition gained approval from the Australian Foreign Investment Review Board and the Treasurer of Commonwealth of Australia today.
The acquisition was in discussion since February earlier this year. NetComm is known for the production of their 4G and 5G internet routers.
NetComm Chairman Justin Milne insists the acquisition was deemed best for shareholders by the company board.
“At a significant premium to the current trading price, Casa Systems’ offer provides NetComm shareholders with certainty of value and the opportunity to realise their investment in full for cash.
“NetComm’s customers will benefit from the resultant increase in scale to deploy unique telecommunications technology solutions, as well as a broader product suite and service capability,” Milne said.
Casa Systems specialise in software solutions for wireless communication technology.
Casa Systems CEO Jerry Guo believes the transaction will present a global leader in the broadband market.
“With complementary product portfolios, the combination of Casa Systems and NetComm strengthens our ability to meet the growing demand for increased bandwidth by communications service providers around the world,”
“[The deal] will diversify our revenues both geographically and by product channel. It expands Casa Systems’ customer reach with the addition of several new Tier 1 Global Communications Services Provider customers,” Milne said.