Bankrupt Casa Systems has sold network firm Netcomm Wireless to fiber networking and cloud software provider DZS for $7 million.

Founded in 1982, Netcomm provides broadband networking across the 5G fixed wireless, home broadband, fiber-extension, and IoT technology domains.

Casa Systems acquired Netcomm in 2019 for $106 million, meaning the recent sale represents a significant hit for the cash-strapped company.

The acquisition will expand the DZS workforce to around 550 people who serve the Americas, EMEA, Australia, and New Zealand markets.

DZS added that the purchase price includes an additional earn-out of up to $3m if 2024 revenue of $87.5m is achieved, with an earn-out structure beginning at $72.5m of 2024 net revenue.

At present, Netcomm has 50 active communications service providers and enterprise customers in the United States, Canada, Latin America, Europe, Australia, and New Zealand.

"The acquisition of NetComm underscores our commitment to innovation at the network Edge and further aligns with our vision and strategy of becoming the premier technology leader in broadband networking and cloud software management solutions,” said Charlie Vogt, president and CEO, DZS.

“While we are technology evangelists for broadband everywhere and fiber-first architectures, fixed and mobile service providers will continue to evolve their networks and leverage a variety of technologies that best fit the geography, topology, and economics of the markets they serve."

Casa agreed to sell multiple assets last month after the company filed for voluntary Chapter 11 bankruptcy in the US Bankruptcy Court for the District of Delaware.

A couple of weeks ago, Casa agreed to sell its cloud-based assets to Lumine Group for $32.2 million.