LTRX - Lantronix to acquire Electronics and Software segment of Communications Systems
Lantronix (LTRX) entered into a definitive Securities Purchase Agreement to acquire Transition Networks and Net2Edge, which comprises the Electronics and Software reportable business segment of Communications Systems (JCS).Lantronix will pay a base price of $25M plus an earn out of up to $7M, based on revenue milestones for the two 180-day periods post closure of securities purchase agreement.Agreement is expected to close in June or July.Revenues from the combined company expected to total more than $100M on an annual basis; Lantronix sees significant operating and product development synergies in the combined company.The acquisition is seen significantly accretive in the first full year of operations; Lantronix will have further commentary on synergies, accretion and non-GAAP EPS expectations upon closing.The acquisition will bring complementary IoT connectivity products and capabilities, including switching, Power over Ethernet and media conversion and adapter products.
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Lantronix to acquire Electronics and Software segment of Communications Systems