Computer networking products maker Lantronix Inc. has agreed to buy an enterprise Internet of Things (IoT) business in a $6.5 million deal to expand its offerings.
Lantronix has agreed to pay cash with assumptions of certain liabilities for the IoT business of NetComm, a subsidiary of DZS of Plano, Texas.
“The strategic acquisition of Netcomm’s IoT portfolio strengthens our Compute and Connect offerings by providing our customers with leading-edge IoT solutions,” stated Saleel Awsare, president and CEO of Lantronix (Nasdaq: LTRX).
IoT is the name for the interconnected world of millions of electronic devices worldwide.
Lantronix is known for making chips that connect a variety of products to the internet, thus enabling remote monitoring of automobiles and underground fuel tanks among thousands of other uses.
Australia, New Zealand Markets
Awsare said the acquisition expands the company’s portfolio and “opens our products to target-rich unserved geographic markets, such as Australia and New Zealand.”
Lantronix said on Nov. 7 it believes that the transaction will close during the second quarter of fiscal 2025, subject to certain conditions, as it also announced a 4% rise in quarterly revenue.
The company had a market cap of $112 million as of Nov. 21.
