Zhone Technologies has completed its acquisition of DZS’ assets, beginning a new chapter for the company.
The acquisition was completed on May 1, following the approval and entry of an order by the United States Bankruptcy Court for the Eastern District of Texas approving the sale of the DZS Assets to Zhone.
After it could not secure the necessary working capital from its current lender or any prospective lenders to sustain the business as we advance, DZS commenced a liquidation proceeding under Chapter 7 of the United States Bankruptcy Code. All United States operations ceased, and all United States employees were terminated as of the time of the chapter 7 filing.
The acquisition was completed on May 1, 2025, following the approval and entry of an order by the United States Bankruptcy Court for the Eastern District of Texas approving the sale of the DZS Assets to Zhone.
Zhone acquired all of the assets of DZS Inc., DZS Services Inc., and DZS California Inc., including all technology, intellectual property, lab facilities, IT systems, and specific customer and supplier contracts.
Clayton Zekelman, the Chairman and Chief Executive Officer of Zhone, stated, "We are very excited to complete this strategic acquisition, and we look forward to working collaboratively with all of Zhone's stakeholders moving forward."
As part of the Transaction, Zhone will also acquire the issued and outstanding shares of four international subsidiaries of DZS: DZS International Inc., DZS Canada Inc., DZS Solutions India Private Limited, and NetComm. It also acquires NetComm's assets separately under separate administration proceedings in Australia.
A global focus
This acquisition could bring clarity for DZS customers and employees globally.
Zhone said acquiring the former DZS International Subsidiaries substantially aligns with its broader strategic objective of acquiring all the former DZS assets worldwide.
Completing the acquisition of DZS’ international assets will not only facilitate the reengagement of former DZS employees but also bolster Zhone's portfolio to include Fiber Extension Distribution Point Unit (DPU) solutions, Fixed Wireless Access (FWA) solutions, and next-generation Wi-Fi Gateway and Access Point CPE solutions.
Also, Zhone will be able to leverage the technologies and innovations associated with DZS's VelocityTM Optical Line Terminal Systems (OLT), SaberTM Optical DWDM Transport and ROADM Systems, HelixTM Optical Network Terminals (ONT), WiFi Gateways (CPE) and Access Points (AP), and Zhone XtremeTM Cloud Management, Automation, and Orchestration Software portfolio.
Reestablishing relationships, company talent
Zhone will be headquartered in Plano, Texas. It will focus on maintaining continuity of service for its customers while integrating and advancing key technology platforms.
From an operational standpoint, Zhone will initially work to restore its technical support services (Zhone Customer Care & Success Programs) to its well-established customer base. It will also reestablish supply chain operations to fulfill purchase order backlog and resume shipments to highly valued customers and channel partners who have remained committed and patient throughout the sale process for the DZS Assets.
After completing these initial priorities, Zhone will shift toward expanding, embracing new customers, and forming strategic partnerships driven by continued innovation and solutions advancement.
Retaining existing company talent is also key.
Zhone said it “is actively working to rehire many of the current and former employees of DZS, ensuring that the talent and expertise of the predecessor organization is preserved and further expanded within Zhone.”
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Sean Buckley
Sean is responsible for establishing and executing the editorial strategies of Lightwave and Broadband Technology Report across their websites, email newsletters, events, and other information products.