Interloper Skyvera lost out by a narrow margin but cost Lumine $17.2 million more than the original deal it had struck
Bloomberg reports that the Canada-based Lumine Group has clinched the deal for Casa Systems’ Axycom 5G core and RAN assets for $32.2 million. It outbid Skyvera’s by $0.2 million.
Before Skyvera got involved, Casa Systems had agreed to sell the assets to Lumine for $15 million to fund bankruptcy proceedings.
Bloomberg said a US bankruptcy judge approved the sale as it seemed Casa Systems was close to out of money this week. If Lumine doesn’t close the deal this week, then the judge has stipulated that the assets will go to Skyvera which was the only other bidder in the auction.
Casa Systems made a considerable splash selling broadband kit to cable operators, but racked up hefty costs getting its 5G mobile core and RAN products to market.
Verizon invested $40 million in Casa Systems in 2022, which gave it a 9.9% stake in the firm.
Casa has agreed to sell its cable systems tech business to fixed access network technology specialist Vecima Networks for $20 million.
In January, Lumine Group agreed to acquire Nokia’s device and service management platform businesses for €185 million. This was part of Nokia’s restructuring of its Cloud and Network Services division. The sale was completed on 1 April. About 500 staff are moving from Nokia to the new owner.
Lumine has been building a portfolio of communications networking software systems through acquisitions over several years.