DZS Signs Deal To Sell Asian Operations For $48 Mln; Gets $25 Mln In Funding

(RTTNews) - DZS Inc. (DZSI), a provider of access, optical, and AI-driven cloud software solutions, said on Friday that signed a deal to sell its Asia business to Korea-based DASAN Networks Inc., a stockholder of DZS, for $48 million, consisting of $5 million of cash and the elimination of around $43 million of debt.

The sales, to be closed in February, allows DZS to focus on the Americas, EMEA, and ANZ regions that are strategically aligned with the technology and acquisition investments made over the past several years.

The company also has secured $25 million in debt and equity funding.

The funding consists of a $15 million, 3-year term note with EdgeCo, LLC, in connection with EdgeCo also receiving 6.1 million of warrants at an exercise price of $1.84, and $10 million as part of a private placement of DZS common stock with a Korean limited partnership controlled by Invites Ventures Co., of which affiliates of DNI are the limited partners.