DASAN Zhone Solutions, Inc. (NASDAQ:DZSI) says it has reached an agreement to buy KEYMILE, a broadband access technology provider. DASAN Zhone will pay EUR 10,250,000 (approximately $11,758,000) in cash for the German company in a deal set to close in the fourth quarter of this year. KEYMILE CEO Lothar Schwemm will stay with the company as general manager after the transaction closes.
Launched in 2002, KEYMILE develops and sells multi-service access platforms for FTTx applications. These include VDSL/vectoring and Gfast for fiber to the node/cabinet technology as well as gear for fiber to the home (FTTH; see “Energie Wasser Bern taps Keymile for Swiss FTTH deployment”). DASAN Zhone sees the deal as expanding its global customer footprint, particularly in Europe and Latin America.
“I am delighted to welcome KEYMILE to our DZS family. This acquisition represents the continuation of our transformation from a leading networking equipment provider to a solutions vendor with next-generation software and services,” said Yung Kim, CEO of DASAN Zhone Solutions. “As a combined DZS, we can capture the broader, global market opportunity and continue to elevate our position as a leading broadband vendor and trusted advisor to prominent carriers and enterprises. I believe the combination of our two companies is going to prove to be very powerful in the market.”
DASAN Zhone Solutions formed in 2016 with the merger of DASAN Network Solutions and Zhone Technologies (see “Zhone Technologies, DASAN Network Solutions complete merger to form DASAN Zhone Solutions”). “Much like the transformational merger of DASAN and Zhone two years ago, this acquisition represents an attractive opportunity to grow in markets where we’ve historically had a smaller footprint and to build on the momentum in our business,” added Michael Golomb, CFO of DASAN Zhone Solutions. “We will execute to the same prudent playbook around sustainable, profitable growth and continue to be good stewards of capital with the KEYMILE acquisition.”
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For more information on FTTx technology and suppliers, visit the Lightwave Buyer’s Guide.