Lantronix Adds High-Margin ARR and Expands Critical Infrastructure Monitoring Platform with Acquisition of Vecima Networks’ Industrial IoT Business

Acquisition adds $5.3 million of total revenue, including $4.5 million of annual recurring revenue (ARR) and approximately 125,000 asset tags under management with gross margins in the high-60% range

Transaction increases Lantronix’s Software & Services mix to more than 10% of total company revenue

IRVINE, Calif., July 07, 2026 (GLOBE NEWSWIRE) -- Lantronix Inc. (NASDAQ:LTRX), a global provider of Edge AI and Industrial IoT solutions that power NDAA-compliant unmanned systems, critical infrastructure, and resilient enterprise networks, has announced an agreement to acquire the assets of Vecima Networks Inc.’s (TSX:VCM) industrial IoT (IIoT) business, including its Nero Global Tracking software-as-a-service platform. The transaction is expected to close in the near term, subject to customary closing conditions.

The acquisition will add a proven SaaS application layer to Lantronix’s edge hardware and connectivity portfolio, expanding its critical infrastructure monitoring vertical and accelerating its shift toward higher-margin, recurring-revenue IoT solutions. Nero Global Tracking brings an established North American customer base across the fleet, municipal, restoration and industrial asset-tracking markets, strengthening Lantronix’s ability to deliver integrated solutions for customers managing mission-critical assets.

Transaction highlights

• Adds approximately $5.3 million of total revenue, including $4.5 million of annual recurring revenue (ARR), and approximately 125,000 asset tags under management.
• Adds a profitable SaaS business with gross margins in the high-60% range, increasing Lantronix’s mix of higher-margin, recurring revenue and bringing Software & Services to more than 10% of total company revenue.
• Expands Lantronix’s critical infrastructure monitoring vertical with an established North American customer base spanning the fleet, municipal, restoration and industrial asset-tracking markets.
• Strengthens Lantronix’s full-stack value proposition by adding application-layer domain expertise that can be integrated with Lantronix hardware, connectivity, firmware and edge compute products.
• Enhances customer expansion opportunities by combining Nero Global Tracking’s installed base with Lantronix’s broader IIoT portfolio.
• Complements Lantronix’s broader growth strategy by adding another high-value vertical alongside the company’s momentum in drones, aerospace & defense and Edge AI-enabled industrial applications.
• Total consideration is approximately $USD 11.5 million, excluding working capital, and other customary adjustments and excluding acquisition-related costs.
  
  

"This acquisition is consistent with our platform strategy and advances exactly where we are looking to take Lantronix: toward higher-margin, recurring-revenue solutions that combine our edge hardware, connectivity and software capabilities," said Saleel Awsare, President and CEO of Lantronix. "At the same time, it complements the strength we are seeing in our drone and aerospace & defense business by expanding into another high-value growth vertical: critical infrastructure monitoring. Nero brings a proven SaaS application layer, established North American customers, and approximately 125,000 asset tags under management, while Lantronix brings the edge hardware, secure connectivity, and firmware expertise needed to deliver a more complete solution for customers managing mission-critical assets."

"The market increasingly demands intelligent platforms that enhance the value of connected hardware and can turn one-time device sales into long-term, recurring customer relationships," Awsare continued. "By bringing the application layer in-house, we gain greater ability to customize firmware, optimize device behavior, and solve customer-specific use cases across fragmented industrial IoT environments. We believe this will strengthen our value proposition, increase customer stickiness, and will position Lantronix to pursue larger opportunities across critical infrastructure and industrial IoT."

Nero Global Tracking provides GPS-based vehicle and asset tracking for fleet operators, municipalities, restoration contractors and industrial customers throughout North America. Pairing Nero Global Tracking with Lantronix’s gateways, edge compute, and connectivity products advances the company’s hardware-plus-recurring-revenue model. The combination is expected to support integrated solutions for fleets, municipal infrastructure, restoration contractors, and industrial asset monitoring.

Nero Global Tracking customers and channel partners can expect continuity in service, support, and product roadmap. The approximately 30-person IIoT team will join Lantronix, adding domain expertise in SaaS-based asset tracking, customer support and application-layer software development. Over time, Nero customers and partners will gain access to Lantronix’s broader IIoT portfolio, including opportunities to integrate Nero Global Tracking with Lantronix hardware, connectivity and edge compute products.

"Lantronix is the right home for this business," said Sumit Kumar, President and CEO of Vecima Networks. "This transaction gives our IIoT team, customers, and channel partners access to a larger global platform with a more comprehensive, end-to-end solution. It brings together industry-leading hardware, connectivity, and application software under one roof. With additional resources to support innovation and growth, we’re confident our customers will benefit from an even stronger value proposition, while also allowing Vecima to sharpen its focus on its core broadband and video markets."

About Lantronix

Lantronix Inc. (NASDAQ:LTRX) is a global leader in Edge AI and Industrial IoT solutions, delivering intelligent computing, secure connectivity and remote management for mission-critical applications. Serving high-growth markets, including smart cities, enterprise IT and commercial and defense unmanned systems, including drones, Lantronix enables customers to optimize operations and accelerate digital transformation. Its comprehensive portfolio of hardware, software and services powers applications from secure video surveillance and intelligent utility infrastructure to resilient out-of-band network management. By bringing intelligence to the network edge, Lantronix helps organizations achieve efficiency, security and a competitive edge in today’s AI-driven world. For more information, visit the Lantronix website.

About Vecima Networks

Vecima Networks Inc. (TSX:VCM) is leading the global evolution to the multi-gigabit, content-rich networks of the future. Our talented people deliver future-ready software, services, and integrated platforms that power broadband and video streaming networks, monitor and manage transportation, and transform experiences in homes, businesses, and everywhere people connect. We help our customers evolve their networks with cloud-based solutions that deliver ground-breaking speed, superior video quality, and exciting new services to their subscribers.

About Nero Global Tracking

Nero Global Tracking provides GPS-based fleet and asset tracking and monitoring solutions to business and municipal customers across Canada and the United States.

©2026 Lantronix, Inc. All rights reserved. Lantronix is a registered trademark. Other trademarks and trade names are those of their respective owners.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: This news release contains forward-looking statements within the meaning of federal securities laws, including, without limitation, statements concerning the completion and closing of the transaction; statements concerning the anticipated benefits of the acquisition of Vecima Networks’ IIoT business, including expected contributions to recurring revenue, growth in Lantronix’s industrial IoT customer base, and its ability to expand its hardware-plus-software platform across fleet, municipal and industrial asset-tracking markets. These forward-looking statements are based on our current expectations and are subject to substantial risks and uncertainties that could cause our actual results, future business, financial condition, or performance to differ materially from our historical results or those expressed or implied in any forward-looking statement contained in this news release. The potential risks and uncertainties include, but are not limited to, such factors as our ability to successfully integrate the IIoT business; the effects of negative or worsening regional and worldwide economic conditions or market instability on our business, including effects on purchasing decisions by our customers; our ability to mitigate any disruption in our and our suppliers’ and vendors’ supply chains due to changes in U.S. or foreign government trade policies, including recently increased or future tariffs, a pandemic or other outbreaks, wars and recent conflicts in Europe, Asia and the Middle East, or other factors; future responses to and effects of public health crises; cybersecurity risks; changes in applicable U.S. and foreign government laws and regulations; our ability to successfully implement our acquisitions strategy or integrate acquired companies; difficulties and costs of protecting patents and other proprietary rights; the level of our indebtedness, our ability to service our indebtedness and the restrictions in our debt agreements; and any additional factors included in our Annual Report on Form 10-K for the fiscal year ended June 30, 2025, filed with the Securities and Exchange Commission (the "SEC") on Aug. 29, 2025, including in the section entitled "Risk Factors" in Item 1A of Part I of that report; in our Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2026, filed with the SEC on May 7, 2026, including in the section entitled "Risk Factors" in Item 1A of Part II of such report as well as in our other public filings with the SEC. Additional risk factors may be identified from time to time in our future filings. In addition, actual results may differ as a result of additional risks and uncertainties about which we are currently unaware or which we do not currently view as material to our business. For these reasons, investors are cautioned not to place undue reliance on any forward-looking statements. The forward-looking statements we make speak only as of the date on which they are made. We expressly disclaim any intent or obligation to update any forward-looking statements after the date hereof to conform such statements to actual results or to changes in our opinions or expectations, except as required by applicable law or the rules of the Nasdaq Stock Market LLC. If we do update or correct any forward-looking statements, investors should not conclude that we will make additional updates or corrections.

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