NetComm Wireless completes sale to Casa Systems

NetComm to delist from the ASX this week.
Written by Chris Duckett, Contributor

The AU$161 million sale of NetComm Wireless to American-based Casa Systems is complete.

According to an announcement on the ASX on Monday morning, the arrangement became legally effective on 21 June, with NetComm shareholders paid AU$1.10 per share today.

NetComm will seek to delist itself from the ASX at the close of trading on Tuesday.

Casa made its offer to NetComm in February, and offered a 53% premium on Netcomm's 20 February closing price of AU$0.72.

Casa Systems chair and CEO Jerry Guo said at the time that the purchase would allow his company to add fixed wireless to its portfolio, as well as diversify its revenue streams and geography.

As part of the purchase, Justin Milne, Stuart Black, David Stewart, David Spence, and Jacqueline Korhonen resigned from the NetComm board, with Steven Collins, Scott Bruckner, and Timo Brouwer headed onto the board.

Separately, Ken Sheridan resigned from the NetComm board on 28 June.

"At a significant premium to the current trading price, Casa Systems' offer provides NetComm shareholders with certainty of value and the opportunity to realise their investment in full for cash," then-NetComm chair Justin Milne said.

"NetComm's customers will benefit from the resultant increase in scale to deploy unique telecommunications technology solutions, as well as a broader product suite and service capability."

In its first half results announced in February, NetComm saw record revenue of AU$94.3 million, up 6.5% on last year, and earnings before interest, tax, depreciation, and amortisation (EBITDA) of AU$8.3 million, a drop of AU$0.9 million compared to the same period last year.

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