Vecima Networks in line to acquire Casa Systems cable business

Broadband technology outfit Casa Systems has started a court-supervised process to carry out sales of its businesses under Chapter 11 bankruptcy rules, with its cable business line likely to be sold to Vecima Networks.

Source: Alamy.com

Casa Systems has entered into a stalking-horse asset purchase agreement to sell the cable tech business to an affiliate of Vecima Networks, but has asked the Delaware bankruptcy court to approve procedures for soliciting additional bids and to set an auction for mid-May.

Casa Systems said it remained committed to the success of its customers and partners and intends to continue supporting them throughout this process.

The company has also entered into an asset purchase agreement to sell its 5G Mobile Core and RAN businesses, which include its Axyom Cloud Native 5G Core Software & RAN Assets, to Lumine Group, a global acquirer of communications and media software businesses and in this case has asked the court for approval to complete the transaction by the end of April.

Michael Glickman, Casa Systems CEO, said, “Like many in our sector, Casa has experienced a significant decline in revenue and profits due in large part to industry-wide downward capital investment and procurement trends in the cable and telco markets. We also have incurred significant investments to bring our 5G Mobile Core and RAN products to market. We believe the sales of our businesses through a Chapter 11 process will maximize value, preserve jobs and minimize disruption for our customers.

“We are incredibly grateful to our employees for their unrelenting hard work and commitment to serving our customers around the world. Their dedication has enabled us to continue to provide our leading portfolio of all-access broadband network solutions to our customers. Throughout this process, we will continue to support our loyal customers.”

Casa Systems has agreed with its lenders to use its cash on hand and proceeds of the anticipated Cloud/RAN Sale to fund its operations and the Chapter 11 process. Casa’s international subsidiaries are not debtors in the Chapter 11 filing; however, certain of their businesses and related assets are included in the two asset sale transactions. The international subsidiaries will continue to operate as normal pending the closing of the sales.

The Company’s NetComm business, which commenced voluntary administration proceedings under Australian law on March 11, 2024, is not included in the US Chapter 11 process.