Lantronix Acquires Vecima's IoT Business for $11.5 Million
Lantronix Inc. is set to acquire Vecima Networks' industrial IoT assets for $11.5 million, enhancing its revenue with $5.3 million, including $4.5 million annual recurring revenue. This acquisition is pivotal as it expands Lantronix’s software and services revenue beyond 10% of total revenue, aligning with its strategy for higher-margin, recurring-revenue solutions.
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Lantronix Inc. will acquire the IIoT business of Vecima Networks, including the Nero Global Tracking platform, for $11.5 million. This acquisition adds approximately $5.3 million in total revenue, with $4.5 million sourced from annual recurring revenue and includes 125,000 asset tags under management.
The deal is expected to close soon and will increase Lantronix's software and services revenue to over 10% of its total revenue. The acquisition also brings high-60% gross margins, surpassing Lantronix's current margin of 43%.
As the company aims to enhance its critical infrastructure monitoring capabilities, this move aligns with its broader growth strategy in industrial IoT. Analysts view this acquisition as a strategic enhancement to Lantronix's product offerings, potentially increasing customer retention and market share.
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