CommScope announced on May 30 that its bid of $45.1 million for the purchase of Casa Systems’ cable business assets has been accepted. The two companies entered a purchase agreement on May 29, and the sale is expected to be completed on June 6.
CommScope CEO Chuck Treadway said in a press release, “As a leader in the cable industry, we are quite pleased by the opportunity to acquire Casa’s cloud-native network solutions. Adding Casa’s technology to our portfolio will allow us to provide a seamless transition for our combined customer base that utilizes both integrated and virtual CMTS (vCMTS) products. This transaction provides stability to Casa’s customers while allowing CommScope to further grow our customer base as we enable customers to migrate to Distributed Access Architecture solutions on their own timeline.”
Casa Systems announced chapter 11 bankruptcy in April, reporting at that time that Vecima Networks, Inc. would be purchasing the cable business.
Dell’Oro’s Jeff Heynen explained in a blog post that Vecima’s decision to walk away from the deal and CommScope’s decision to enter the highest bid can be explained by how each estimates the growth of the vCMTS market.
“Vecima is currently scaling its RPD and R-OLT products to meet increasing Tier-1 demand,” wrote Heynen. “Absorbing Casa’s products, customer base, and employees could have siphoned away the momentum the company has already built.”
Heynen believes that CommScope, having already found success with its CMTS and CCAP platforms, is comfortable with the requirements of scaling products.
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