Computer networking products maker Lantronix Inc. in Irvine has added a third acquisition under Chief Executive Paul Pickle as the expanded company seeks to push its annual revenue up to $250 million.
Lantronix (Nasdaq: LTRX) said earlier this month it had completed its previously announced acquisition of Transition Networks and Net2Edge, which comprise the majority of the electronics and software reportable business segment of Communications Systems Inc. (Nasdaq: JCS) of Minnetonka, Minn.
The transaction, which is worth up to $32 million, will bring immediate expansion to Lantronix, with revenue from the combined company expected to total more than $100 million on an annual basis, the company said in a statement on Aug. 2.
“Acquisitions and/or mergers are a part of our core business strategy,” Pickle told the Business Journal two days later. “In just over two years since I’ve been here, we’ve gone from a $40 million company to just over $100 million through acquisitions.”
“We’d like to get to $250 million as quickly as possible,” he said.
Shares in Lantronix have risen about 15% this year, and closed at $5.09 apiece on Aug. 9, to give the company a market cap of about $147 million. The company was No. 5 on last year’s Business Journal list of the fastest-growing public companies with less than $100 million in revenue, as measured before the latest acquisition.
IoT, Secure Data
Lantronix is a maker of products for the Internet of Things (IoT) and secure data, offering software as a service (SaaS), connectivity services, engineering services and intelligent hardware. Internet of Things refers to the growing field of technology which connects everyday objects to send and receive data via the internet.
Lantronix’s products are deployed inside millions of machines at data centers, offices, and remote sites serving a wide range of industries. They include energy, agriculture, medical, security, manufacturing, distribution, transportation, retail, financial, environmental, and government.
The latest acquisition will bring complementary IoT connectivity products and capabilities to the combined company.
Lantronix says it sees significant operating and product development synergies.
Lantronix Customers
“In the future we will continue our organic and inorganic efforts to build critical mass in the Connect, Compute, and Comprehend functions that serve as a platform for customer solutions,” Pickle said.
“We are taking advantage of the window of opportunity to create a single-source IoT solution,” Pickle said.
Through acquisitions, the company is picking up “much-needed pieces” to accelerate its IoT offerings. The IoT technology is enabling Lantronix “to transform our product offering from technology components to complete IoT solutions for our customers.”
Pickle took over as the CEO in April 2019, after his departure from Microsemi following the Aliso Viejo-based firm’s $10.3 billion sale to Microchip Technology. Another Microsemi alumnus at Lantronix is David Goren, the legal and business affairs vice president. A fund overseen by former Microsemi CEO James ‘Jimmy P’ Peterson has a 6.7% stake in the company.
Lantronix acquired IoT specialist Intrinsyc Technologies Corp. of Canada in January 2020. It also acquired Maestro and Falcom Holdings Ltd., which specializes in wireless IoT and connectivity technologies, in July 2019.
Intrinsyc’s combo of hardware and software offerings is used in a variety of applications for mobile devices and Internet of Things products, including robotics, wearables, and automotive uses.
