Vecima Networks Offers to Acquire Casa Systems’ Cable Business Assets

Vecima Networks made a significant announcement today, revealing its intentions to acquire the Cable Business unit assets of Casa Systems, a move prompted by Casa’s recent filing for Chapter 11 bankruptcy protection.
Vecima NetworksCasa Systems has sought approval to designate Vecima as a stalking horse bidder for its Cable Business assets, a strategic maneuver aimed at establishing a baseline bid that potential competitors must exceed to secure the acquisition.

The decision to designate Vecima as the stalking horse bidder provides the company with a competitive advantage, enabling it to negotiate favorable terms for the acquisition, including the selection of specific assets. This preemptive bid may dissuade other interested parties from entering the bidding process, as they evaluate whether the assets’ value justifies a higher offer.

Should Vecima’s bid prove successful, it stands to gain assets that generated $41 million in revenue in 2023, primarily driven by license revenue from its installed base of C100G CCAP platforms. However, this revenue represents a notable decline from previous years, with Casa Systems reporting $81 million in 2022 and $115 million in 2021.

Casa Systems, renowned for its C40G and C100G CMTS and CCAP platforms, secured a significant market presence with tier 1 operators such as Charter, Claro, and Rogers. However, challenges such as a softer market for DOCSIS licenses and exclusion from Charter’s network upgrade project in March 2023 hindered Casa’s recovery efforts. Despite traction with certain products like DAA, Casa faced declining license revenue for its integrated CCAP platforms.

Vecima’s acquisition presents an opportunity to revitalize Casa’s cable business, offering a renewed focus on cable and fixed broadband markets. With Vecima’s support, Casa’s existing customer base could potentially transition to longer-term DAA solutions, Jeff Heynen at Dell’Oro Group said in a blog post.

Product-wise, Vecima stands to benefit from Casa’s Axyom vCMTS software, complementing its Entra vCMTS platform and expanding vCMTS deployments worldwide. Integration efforts are anticipated to streamline software development and enhance interoperability across operator networks.

While Harmonic currently dominates the vCMTS market, opportunities exist for Vecima, especially with Charter’s plans to deploy multiple vCMTS platforms. Additionally, many cable operators are yet to transition to vCMTS, presenting a significant market opportunity for Vecima.

Vecima’s acquisition will also include Casa’s Axyom vBNG platform, enhancing subscriber management functions for Vecima’s SF-4X Remote OLT and EXS1610 OLT, particularly in XGS-PON deployments. This move aligns with Vecima’s goal to expand its FTTH footprint and offer comprehensive solutions to cable operators.

Overall, Vecima’s acquisition of Casa Systems’ Cable Business assets signifies a strategic move to strengthen its position in the cable and broadband markets, offering enhanced solutions to operators worldwide. News Desk


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