TORONTO - Lumine Group Inc. (TSXV: LMN), a company specializing in acquiring communications and media software businesses, announced today the signing of an asset purchase agreement to acquire 5G technology assets from Casa Systems (NASDAQ: NASDAQ:CASA). Casa Systems, undergoing a Chapter 11 process, has agreed to sell its Axyom Cloud Native 5G Core Software & RAN Assets, marking Lumine Group's 14th corporate carve-out in the communications and media sector.
The acquisition includes a suite of cloud-native 5G network functions and solutions that are currently utilized in core and access networks globally. These solutions encompass a range of technologies, including Access & Mobility Management, Session Management, and Network Slicing Functions, as well as 4G/5G Security Gateway and Access Femto Small Cell Devices.
Casa Systems, founded in 2003 and headquartered in Andover, Massachusetts, has a significant presence in the 5G space, with its solutions being used by over 475 customers in more than 70 countries, including Verizon (NYSE:VZ), its largest Wireless 5G software and Femto customer.
Tony Garcia, Group President at Lumine Group, highlighted that the acquisition will be a valuable addition to their portfolio, particularly in the signalling and security software areas. Lumine Group plans to operate the new business unit under a separate brand to clearly distinguish its offerings in the global 5G cloud native core and access markets.
Michael Glickman, CEO of Casa Systems, expressed confidence that Lumine Group's expertise in the communications sector and experience with corporate carve-outs positions them well to support the future goals of the 5G assets. He emphasized the importance of minimizing disruption for employees and customers during the transition.
David Nyland, CEO of Lumine Group, stated that the acquisition aligns with their mission to build a leading global network of communications and media software companies. He assured that a smooth transition for customers and employees is a top priority as they integrate the new business.
The transaction is expected to enhance Lumine Group's offerings in the communications and media industry, expanding its portfolio ecosystem. The financial terms of the deal were not disclosed.
This report is based on a press release statement from Lumine Group.
InvestingPro Insights
Lumine Group Inc. (TSXV: LMN) has been making strategic moves in the communications and media software sector, and its recent acquisition of 5G technology assets from Casa Systems is set to bolster its portfolio. As investors and stakeholders look to understand the financial health and potential of Lumine Group, key metrics from InvestingPro offer valuable insights.
The company's market capitalization stands at approximately $6.42 billion, reflecting its substantial size in the communications and media software industry. Despite not having turned a profit over the last twelve months, the company's revenue has seen an impressive year-over-year growth of 95.38% as of the last twelve months ending Q4 2023. This growth trajectory is further underscored by a quarterly revenue growth of 109.57% for Q4 2023. Such robust growth rates are indicative of the company's expanding market presence and could signal future profitability, aligning with analysts' predictions that Lumine Group will be profitable this year.
Moreover, Lumine Group boasts a remarkable gross profit margin of 91.5%, which is a testament to its ability to manage costs effectively and maintain profitability at the gross level. This figure is particularly relevant for investors considering the company's potential for sustained financial performance in the competitive 5G technology space.
InvestingPro Tips highlight two notable aspects of Lumine Group: the company holds more cash than debt on its balance sheet, which provides financial flexibility and resilience, and analysts anticipate sales growth in the current year, echoing the positive revenue trends observed.
For readers interested in a deeper dive into Lumine Group's financials and for additional InvestingPro Tips, visit InvestingPro. Lumine Group is currently featured with a total of 10 InvestingPro Tips, which can provide further guidance on investment decisions. To gain access to these insights, use the coupon code PRONEWS24 for an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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