Bankrupt broadband and cloud services provider DZS, along with most of its assets, has been acquired by Canadian ISP MNSi.

MNSi said this week it has acquired "substantially all of the assets of DZS," following DZS' bankruptcy, and will now operate them under the name Zhone, a legacy brand which was reborn as a new company in April.

Broadband gear and cloud services company DZS ceased operations in the US after entering Chapter 7 protection in March.

Financial details of the transaction were not disclosed by Zhone, which said the transaction completed on May 1, 2025.

According to the company, the acquisition includes all of the assets of DZS Inc., DZS Services Inc., and DZS California Inc., and includes all technology, intellectual property, lab facilities, IT systems, and certain customer and supplier contracts.

“Our team has worked tirelessly within the United States Bankruptcy Court proceedings to reestablish and renew forward-looking partnerships with key third-party development (ODM) and contract manufacturers," said Clayton Zekelman, the chairman and chief executive officer, Zhone.

"These relationships are critical to securing vital silicon chip technology, manufacturing, IT systems, and globally established facilities that will support Zhone’s long-term growth.”

The new company will be headquartered in Plano, Texas, like the previous company DZS was.

Ironically, DZS was initially founded as Zhone Technologies back in 1999, before the business rebranded from Dasan Zhone under Charlie Vogt, the company's CEO who took over at DZS in August 2020.

As part of the deal, Zhone also exercised its option to acquire all of the issued and outstanding shares of four international subsidiaries of DZS, specifically DZS International Inc., DZS Canada Inc., DZS Solutions India Private Limited, and NetComm Wireless Pty Ltd.

The company said it is separately acquiring the assets of NetComm through the Australian bankruptcy courts.

"The acquisition of the former DZS International Subsidiaries aligns with Zhone’s broader strategic objective to acquire substantially all of the former DZS assets worldwide," said Zhone. "The completion of these international transactions will not only facilitate reengagement of former DZS employees, but will also bolster Zhone’s market-leading portfolio to include Fiber Extension Distribution Point Unit (DPU) solutions, Fixed Wireless Access (FWA) solutions, and next-generation WiFi Gateway and Access Point CPE solutions."

DZS previously sold some of its assets, including its Asian business unit, for $48 million to one of its major shareholders, Dasan Networks.

In November, the company sold its enterprise Internet of Things (IoT) unit for $6.5 million and its WiFi Management software portfolio for $34m in October.

Despite some of the sales last year, DZS acquired network firm Netcomm Wireless from Casa Systems in May.