CommScope was the winning bidder of Casa Systems’ cable business assets with a winning bid of $45.1 million, surpassing Casa Systems’ previous agreement with Vecima Networks, which had offered $44.95 million.
CommScope, a global leader in network connectivity, has emerged as the highest and best bidder to acquire Casa Systems, Inc.’s cable business assets. The acquisition agreement, finalized on May 29, 2024, involves a purchase price of $45.1 million and is set to conclude Casa Systems’ ongoing bankruptcy saga.
The transaction, executed under section 363 of the Bankruptcy Code, will be reviewed at a sale hearing scheduled for June 4, 2024, and is anticipated to close on June 6, 2024. This strategic acquisition is poised to bolster CommScope’s Access Network Solutions, enhancing its offerings in virtual CMTS and PON products.
“As a leader in the cable industry, we are quite pleased by the opportunity to acquire Casa’s cloud-native network solutions,” said Chuck Treadway, CEO of CommScope. “Adding Casa’s technology to our portfolio will allow us to provide a seamless transition for our combined customer base that utilizes both integrated and virtual CMTS products. This transaction provides stability to Casa’s customers while allowing CommScope to further grow our customer base as we enable customers to migrate to Distributed Access Architecture solutions on their own timeline.”
CommScope’s winning bid surpassed Casa Systems’s previous agreement with Vecima Networks, which had offered $44.95 million. Vecima is now designated as the backup bidder.
Despite thorough due diligence, Vecima decided not to increase its bid further, citing the proposed price as unsupportable based on its valuation of the assets.
Casa Systems’ cable products are well-regarded for their architecture and reliability, having a significant footprint at major cable providers like Charter Communications, Claro, and Rogers. However, the company faced exclusions from major upgrade programs and declining revenues due to license changes.
Casa Systems’ financial difficulties led to broader reorganization efforts. The company previously sold its 5G mobile core and radio access network (RAN) business to Lumine Group for $32.25 million.
Verizon, a major customer, had integrated Casa’s 5G core components into its private network offerings and invested significantly in the company.
Casa Systems, attributed the bankruptcy to industry-wide downward trends in capital investment and procurement in the cable and telco markets, along with significant investments in 5G mobile core and RAN products.
