DZS Secures $25M In Funding And Signs Definitive Agreement To Divest Asia Business To Korea-Based DASAN Networks Inc., A Significant Stockholder Of DZS, For $48M
Portfolio Pulse from Benzinga Newsdesk
DZS (NASDAQ:DZSI) has announced securing $25 million in funding and the divestiture of its Asia business to DASAN Networks Inc. (DNI) for $48 million. The deal includes $5 million in cash and the elimination of about $43 million of debt. The divestiture will allow DZS to focus on the Americas, EMEA, and ANZ regions, aligning with its strategic investments in technology and acquisitions. The additional working capital is expected to support DZS's growth, with government stimulus funds deployment beginning in 2024. The company anticipates improved gross margins by the end of 2024 and is hosting a conference call on January 8, 2024.
January 05, 2024 | 1:17 pm
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DZS has secured significant funding and divested its Asia business, which is expected to strengthen its balance sheet and focus on key regions with potential for growth.
The divestiture and funding are likely to have a positive impact on DZS's financial health and strategic focus, potentially leading to stock price appreciation in the short term as the market reacts to the company's strengthened position and clear direction.
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