Vecima Announces Agreement to Sell Mobile and Fixed-asset Tracking Business to Lantronix
Vecima Networks Inc. (TSX:VCM) has announced an agreement to sell the assets of its Telematics mobile and fixed-asset tracking segment, including its Nero Global Tracking software (the "Telematics Business"), to Lantronix, Inc. ("Lantronix"), a global provider of Edge AI and Industrial IoT solutions that delivers intelligent computing, secure connectivity, and remote management for mission-critical applications.
Proceeds from the all-cash transaction are expected to be approximately $16.5M CAD, subject to customary working capital adjustments. The purchase price includes $14.5M CAD payable at closing and an additional $2.0M CAD payable by year-end 2026. The transaction represents an asset sale and is expected to close in the near term, subject to customary closing conditions.
The Telematics Business has been a part of Vecima since 2016, establishing a strong reputation for innovation, trusted customer relationships, and reliable fleet management solutions. The sale to Lantronix marks an exciting next chapter for the business, providing expanded opportunities for continued innovation, investment, and growth.
"The Telematics Business has been an important part of Vecima's history for many years, and we are incredibly proud of what the team has built," said Sumit Kumar, President & CEO of Vecima Networks, Inc. "We want to sincerely thank Lindsay Ryerson and his dedicated team for their innovation and commitment to our customers over the years. Their many contributions have helped establish a highly respected business with differentiated technology and long-standing customer relationships."
"We are excited to see the Telematics Business join Lantronix, where its products, customers, and employees will have the opportunity to continue growing as part of an organization with a strong strategic focus in Industrial IoT and Edge AI," Mr. Kumar continued.
"For Vecima, this transaction further sharpens our focus on the opportunities ahead in our core broadband access and video platforms. We are seeing increasing visibility into customer demand driven by large-scale network deployment programs, fiber expansion, DOCSIS® evolution, and the growing need for AI-enabled broadband infrastructure," added Mr. Kumar. "With a strengthened balance sheet and a clear strategic focus, we are well-positioned to accelerate growth, expand our software business, and continue delivering innovative broadband and video solutions for our customers."
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. There is power in connectivity – it enables people, businesses, and communities to grow and thrive. Learn more at vecima.com.
Forward-Looking Statements
This news release contains "forward-looking information" within the meaning of applicable securities laws. Forward-looking information is generally identifiable by use of the words "believes", "may", "plans", "will", "anticipates", "intends", "could", "estimates", "expects", "forecasts", "projects" and similar expressions, and the negative of such expressions.
Forward-looking information in this news release includes, but is not limited to, any statements respecting: the timing of the payment of the proceeds of the transaction; the closing of the transaction; the expected opportunities for the Telematics Business, its products, customers, and employees; and Vecima’s ability to accelerate growth, expand its software business, and deliver innovative broadband and video solutions.
The forward-looking statements are based on the current expectations and assumptions about future events and are subject to the management of Vecima and are inherently subject to uncertainties and changes in circumstances and their potential effects and speak only as of the date of such statement. There can be no assurance that future developments will be those that have been anticipated. A more complete discussion of the risks and uncertainties facing Vecima is disclosed under the heading "Risk Factors" in Vecima’s Annual Information Form dated September 25, 2025, as well as Vecima’s continuous disclosure filings with Canadian securities regulatory authorities available at www.sedarplus.ca. All forward-looking information herein is qualified in its entirety by this cautionary statement, and Vecima disclaims any obligation to revise or update any such forward-looking information or to publicly announce the result of any revisions to any of the forward-looking information contained herein to reflect future results, events, or developments, except as required by law.
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Media Relations: bernadette.dunn@vecima.com