Award-winning CloudCheck® and Expresse® software solutions deployed in over 125 million homes globally will expand DZS Xperience suite and enhance DZS Cloud platform

Dallas, May 2, 2022DZS (Nasdaq: DZSI), a global leader in access networking and cloud software platforms, today announced it has signed a definitive agreement to acquire specific core as-sets of Adaptive Spectrum and Signal Alignment, Inc. (ASSIA®), an industry pioneer of broadband access quality-of-experience solutions. These assets include the award-winning CloudCheck® WiFi experience management and Expresse® access-network optimization solutions deployed by leading tier 1 operators globally. The transaction also will add an elite team of highly skilled cloud and AI software engineers, architects and business leaders. The acquired software solutions will add data analytics and network intelligence capabilities to DZS Cloud, including managed WiFi solutions, access-network optimization and intelligent automation tools.

“With over 125 million broadband and WiFi connections under contract, CloudCheck and Expresse will elevate the DZS Cloud platform and expand our customer base to include marquee brands such as Bouygues Telecom, Deutsche Telekom, Liberty Latin America, Lumen, TalkTalk Group, Telefonica, TELUS and approximately 60 other notable service providers around the world,” said Charlie Vogt, president and CEO of DZS. “The expansion of the DZS Xperience software suite with Cloud-Check and Expresse, combined with our existing DZS Cloud service orchestration and network automation offerings that are the basis of the DZS new Xtreme software suite, distinguish DZS Cloud as one of the industry’s most comprehensive service and consumer-experience-management software platforms with a unique value proposition for multi-vendor service provider network environments.”

CloudCheck and Expresse deliver incremental revenue opportunities, an optimal consumer experience and operational efficiencies for service providers including:

• High performance service delivery: intelligent and adaptive WiFi management with real-time access-edge performance optimization
• World-class network and customer-support operations: proactive, predictive and automated diagnostics, troubleshooting and resolution of service issues integrated into customer support and network operations workflows
• Advanced service insights and recommendations: broadband traffic and user behavior modelling to identify service and network-upgrade opportunities

CloudCheck and Expresse uniquely transform how service providers manage, optimize and deliver new services that enhance consumer experience. Expresse has pioneered the access-network assurance category for service providers globally for over a decade. This software solution opti-mizes the end-to-end, consumer quality-of-experience with real-time monitoring, diagnosis and resolution of performance issues in multi-vendor access networks. CloudCheck will become the DZS consumer-management platform, optimizing WiFi performance and providing consumers with a menu of capabilities including parental controls, network performance analytics, security protection, and a roadmap of new in-home services.

“The CloudCheck and Expresse addition to the DZS convergent and transformational portfolio of broadband-connectivity, mobile, optical-edge and network orchestration solutions will create an enviable end-to-end portfolio of access networking, in-home WiFi and cloud native software solutions. These will further enhance connectivity, proliferate adaptive network-performance optimization and increase the levels of scalable support provided to ASSIA’s existing customers operational efficiency and as well for the many other customers of DZS,” said John Cioffi, ASSIA CEO and Chairman. “The DZS global deployed base of over 20 million ONTs, access points, gateways and subscriber devices will readily incorporate Expresse and CloudCheck. I am proud of ASSIA’s exceptionally talented employees for the many technological advancements and milestones achieved over the years and look to assist those who will follow their next chapter of success at DZS.”

The newly acquired customer relationships represent over 125 million broadband and WiFi connections. The Expresse and CloudCheck solutions support over 150 unique residential gateways from a wide array of equipment suppliers, further extending the DZS commitment to open standards and interoperability.

“Delivering the best possible subscriber broadband experience is supremely important to TELUS, and ASSIA’s CloudCheck and Expresse solutions have been essential in helping us to manage WiFi performance and end-to-end broadband service assurance,” said Ibrahim Gedeon, CTO at TELUS. “The integration of these powerful software solutions with the DZS Cloud platform is great news for us, as we are familiar with both of these solutions and platforms and see the combination as helping us to increase our service agility and responsiveness. It is clear that DZS is becoming a disruptor with its rapidly evolving DZS Cloud strategy, creating a comprehensive platform for end-to-end orchestration, automation, service assurance and diagnostics capabilities across fiber, copper, WiFi and 5G xHaul that can help take the TELUS converged subscriber experience to the next level while enabling more operational agility and efficiency.”

“Over the course of the last decade, Lumen has developed a deep appreciation of the power of CloudCheck and Expresse in helping us to deliver an optimal customer experience,” said Brian Bond, VP of Architecture, Engineering and Technology at Lumen. “The combination of these solutions provides us with end-to-end network visibility and management from the central office to the WiFi connected subscriber. Lumen leverages the diagnostics and optimization for WiFi and Next Best Action recommendations for providing better service and support to subscribers and internal proactive maintenance policies, resulting in less dispatches and more satisfied customers.”

This all-cash acquisition will expand the DZS Cloud platform’s recurring Software-as-a-Service (SaaS) revenue, accelerating our previously stated target margin expansion timeline. Expected to close during Q2, the acquisition will be accretive to DZS adjusted gross margin, adjusted EBITDA margin and non-GAAP EPS.

About DZS
DZS Inc. (NSDQ: DZSI) is a global leader in broadband connectivity and communications software platforms.

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