Lantronix Acquires Vecima Networks' Industrial IoT Business
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 11 hours ago
0mins
Lantronix has announced an agreement to acquire the assets of Vecima Networks' industrial IoT business, including its Nero Global Tracking software-as-a-service platform. The transaction is expected to close in the near term, subject to customary closing conditions. The transaction adds approximately $5.3M of total revenue, including $4.5M of annual recurring revenue, and approximately 125,000 asset tags under management. The total consideration is approximately $11.5M, excluding working capital, and other customary adjustments and excluding acquisition-related costs. Nero Global Tracking customers and channel partners can expect continuity in service, support, and product roadmap. The approximately 30-person IIoT team will join Lantronix.
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About LTRX
Lantronix Inc. specializes in compute and connectivity Internet of things (IoT) solutions that target industries including smart cities, automotive and enterprise. The Company's products and services help companies to capitalize on the expanding IoT market by delivering customizable solutions that address each layer of the IoT stack. Its solutions include intelligent substations infrastructure, infotainment systems and video surveillance, supplemented with advanced out-of-band management (OOB) for cloud and edge computing. Its solutions enable ultra-fast ethernet-to-cellular and wi-fi connectivity for machines in the demanding environments. Its product lines include Embedded IoT Modules, IoT Systems Solutions, and Software and Engineering Services. The Company's products include Edge AI, OOB, network infrastructure, industrial IoT, SoMs and dev kits, and connectivity modules. Its SmartLV, powered by the Qualcomm IQ-615 processor, is an AI-enabled IoT Edge Compute Cellular Gateway.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Market Opportunities: CEO Sumit Kumar indicated that visibility into customer demand is increasing due to large-scale network deployments, fiber expansion, and DOCSIS® evolution, providing a solid foundation for future business growth.
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- Business Transformation: This asset sale signifies Vecima's shift in focus towards its core broadband access and video platforms, with expectations to accelerate growth by strengthening its software business and innovation capabilities to meet increasing customer demands.
- Market Opportunities: CEO Sumit Kumar indicated that visibility into customer demand is increasing due to large-scale network deployments, fiber expansion, and DOCSIS® evolution, providing a solid foundation for future business growth.
- Strategic Focus: The transaction not only opens a new chapter for the Telematics business but also allows it to gain greater innovation and investment opportunities within the Industrial IoT and Edge AI sectors, further enhancing Lantronix's competitive edge in the market.
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- Critical Infrastructure Support: The company delivers secure and resilient connectivity solutions that facilitate digital transformation initiatives for enterprises and governments, accelerating the development of smart cities and Industrial IoT.
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- Positive Stock Market Reaction: In pre-market trading on Nasdaq, Lantronix shares rose by 2.48% to $6.61, reflecting a positive market response to the collaboration and potentially indicating future growth prospects.
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- Critical Infrastructure Solution: The collaboration between Lantronix and Cherry & White introduces the Rapid Wi-Fi platform, designed to address high-performance connectivity challenges faced by critical infrastructure operators in remote environments, thereby enhancing safety and operational efficiency.
- Ultra-Fast Connectivity Capability: Powered by Lantronix's NTC-552 industrial 5G gateway, the platform delivers connectivity speeds up to 70 times faster than traditional solutions, enabling rapid deployment even in low or no-connectivity environments, significantly reducing operational costs.
- Flexible Deployment Options: The Rapid Wi-Fi platform offers both Vehicle Connectivity and Portable Connectivity configurations, supporting quick setup and multi-interface integration, which reduces the need for site visits and enhances overall operational efficiency.
- International Market Expansion Potential: The platform's compatibility with private 5G spectrum across Germany, France, the UK, and Latin America strengthens Lantronix's competitive position in the global market and provides robust support for its growth in the industrial IoT sector.
See More
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See More
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