Lantronix Completes Acquisition of Transition Networks and Net2Edge
Irvine, CA – August 2, 2021 – Lantronix, Inc. (“Lantronix”) (NASDAQ: LTRX), a global provider of Software as a Service (Saas), connectivity services, engineering services, intelligent hardware and turnkey solutions for the Internet of Things (IoT) and Remote Environment Management (REM), today announced that it has completed its previously announced acquisition of Transition Networks and Net2Edge, which comprises the majority of the Electronics and Software reportable business segment of Communications Systems, Inc. (NASDAQ: JCS) (“CSI”).
What does this mean for Sol Distribution Customers?
As Sol Distribution are official partners of Lantronix, Transition Networks, and Net2Edge, our customers will not be affected at all. You can continue to order Lantonix, Transition Networks and Net2Edge products from Sol Distribution as you always have.
The transaction will bring immediate scale to Lantronix, with revenues from the combined company expected to total more than $100 million on an annual basis. The acquisition will bring complementary IoT connectivity products and capabilities, including switching, Power over Ethernet (PoE) and media conversion and adapter products.
Lantronix sees significant operating and product development synergies in the combined company and expects significant day one synergies will drive immediate non-GAAP earnings accretion upon closing, and the company further expects to realize $7 million in annual run rate synergies over the course of the first 24 months. Lantronix will release guidance for its fiscal year 2022 on its fourth quarter fiscal year 2021 earnings conference call, with that date to be named shortly.
Silicon Valley Bank, the bank of the world’s most innovative companies and their investors, along with SVB Capital, provided acquisition financing.
O’Melveny & Myers LLP served as legal advisor to Lantronix.
Lantronix Inc. is a global provider of secure turnkey solutions for the Internet of Things (IoT) and Remote Environment Management (REM), offering Software as a Service (SaaS), connectivity services, engineering services and intelligent hardware. Lantronix enables its customers to provide reliable and secure IoT Intelligent Edge and OOBM solutions while accelerating time to market. Lantronix’s products and services dramatically simplify the creation, development, deployment and management of IoT projects while providing quality, reliability and security across hardware, software and solutions.
With three decades of proven experience in creating robust IoT technologies and OOBM solutions, Lantronix is an innovator in enabling its customers to build new business models, leverage greater efficiencies and realize the possibilities of the Internet of Things. Lantronix’s solutions are deployed inside millions of machines at data centers, offices and remote sites serving a wide range of industries, including energy, agriculture, medical, security, manufacturing, distribution, transportation, retail, financial, environmental and government.
Lantronix is headquartered in Irvine, Calif. For more information, visit www.lantronix.com.
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