en.Wedoany.com Reported - Lantronix Inc. (NASDAQ: LTRX), a provider of edge AI and industrial IoT solutions, announced an agreement to acquire the industrial IoT (IIoT) business assets of Vecima Networks Inc. (TSX: VCM), including the Nero Global Tracking software-as-a-service platform. The transaction is expected to close in the near term, subject to customary closing conditions.
This acquisition will add a proven SaaS application layer to Lantronix's edge hardware and connectivity portfolio, expand its presence in the critical infrastructure monitoring vertical, and accelerate the transition to higher-margin, recurring revenue IoT solutions. Nero Global Tracking has an established North American customer base in the fleet, municipal, remediation, and industrial asset tracking markets, helping to enhance Lantronix's ability to deliver integrated solutions for customers managing mission-critical assets.
In terms of transaction highlights, the acquisition will add approximately $5.3 million in total revenue, including $4.5 million in annual recurring revenue (ARR) and approximately 125,000 managed asset tags. The business has gross margins in the high 60% range (approximately 67%-69%), which will increase Lantronix's proportion of high-margin, recurring revenue and boost software and services revenue to over 10% of the company's total revenue. The transaction also expands Lantronix's footprint in the critical infrastructure monitoring vertical, with a total consideration of approximately $11.5 million, excluding working capital and other customary adjustments and acquisition-related costs.
Saleel Awsare, President and CEO of Lantronix, stated that the acquisition aligns with the company's platform strategy and advances its direction toward higher-margin, recurring revenue solutions. By expanding into the high-value growth vertical of critical infrastructure monitoring, the acquisition complements the company's strengths in drones and the aerospace and defense business. Nero Global Tracking provides GPS-based vehicle and asset tracking services to fleet operators, municipalities, remediation contractors, and industrial customers across North America. Combining Nero Global Tracking with Lantronix's gateways, edge computing, and connectivity products advances the company's hardware-plus-recurring-revenue model. This combination is expected to support integrated solutions for fleet, municipal infrastructure, remediation contractors, and industrial asset monitoring.
Nero Global Tracking's customers and channel partners will gain continuity of service, support, and product roadmap. An IIoT team of approximately 30 people will join Lantronix, adding expertise in SaaS-based asset tracking, customer support, and application-layer software development. Over time, Nero customers and partners will gain access to Lantronix's broader IIoT portfolio. Sumit Kumar, President and CEO of Vecima Networks, stated that this transaction allows the company's IIoT team, customers, and channel partners to access a larger global platform, offering more comprehensive end-to-end solutions.
