DZS To Acquire NetComm; DZS To Pay $7M At Closing; Purchase Price Includes Additional Earn-Out Of Up To $3M If 2024 Revenue Of $87.5M Is Achieved With Such Earn-Out Structure Beginning At $72.5M Of 2024 Net Revenue
Portfolio Pulse from Benzinga Newsdesk
DZS announced its acquisition of NetComm for $7M at closing, with an additional earn-out of up to $3M if 2024 revenues reach $87.5M, starting from $72.5M in net revenue.
May 06, 2024 | 8:36 pm
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DZS's acquisition of NetComm for $7M, with potential additional earn-out, indicates a strategic expansion with performance-based incentives.
The acquisition of NetComm by DZS is a significant strategic move, indicating DZS's commitment to growth and expansion. The structure of the deal, with an additional earn-out based on achieving revenue targets, suggests confidence in the future performance of NetComm under DZS's umbrella. This could potentially boost investor confidence in DZS's growth strategy and operational efficiency, leading to a positive short-term impact on DZS's stock price.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100