Business
Lantronix Announces Acquisition of Uplogix
Increases Scale of Out-of-Band Remote Management Solutions Product OfferingsSolidifies Lantronix Market Position With Complementary High-End SolutionsDrives
About this update from Lantronix, Inc.
[{"type":"text","content":"Increases Scale of Out-of-Band Remote Management Solutions Product OfferingsSolidifies Lantronix Market Position With Complementary High-End SolutionsDrives Significant Engineering Synergies and Leverages Lantronix Sales Motion and ReachAcquisition Expected to Be Accretive to Lantronix GAAP Gross MarginsLantronix Expects Acquisition to Be Accretive to Non-GAAP EPS Within First Six Months Post-Close IRVINE, Calif., Sept. 12, 2022 (GLOBE NEWSWIRE) -- Lantronix Inc. (NASDAQ: LTRX), a global provider of secure turnkey solutions for Intelligent IT and Internet of Things (IoT), today announced its acquisition of Out-of-Band (OOB) management solutions provider, Uplogix Inc., for approximately $8 million in cash with an additional payment of up to $4 million, subject to the achievement of certain revenue targets for Uplogix. The transaction will bring immediate scale to Lantronix's OOB remote management solutions, adding a complementary high-end product offering that includes high-margin maintenance and licensing revenues. Lantronix sees significant operating and product development synergies in the combined company and expects the acquisition will be accretive to non-GAAP earnings in the first six months of operations. OOB network management solutions address the need for more resilient networks for 5G IoT and Edge Computing applications. Gartner Research estimates by 2025, more than 50 percent of enterprise-managed data will be created and processed outside the datacenter or cloud. Lantronix’s investment in OOB technology expands its offering to continue to meet the growing demands of this market. Lantronix today further reported that it has entered into an amendment to its current Third Amended and Restated Loan and Security Agreement with Silicon Valley Bank to provide Lantronix with an additional term loan, in the original principal amount of $5 million, to be used to fund the acquisition of Uplogix and for working capital purposes. The additional term loan bears interest at either term SOFR or the prime rate, at the option of Lantronix, plus a margin that ranges from 3.10 percent to 4.10 percent in the case of term SOFR and 1.50 percent to 2.50 percent in the case of prime rate, depending on Lantronix’s total leverage with a term SOFR floor of 1.50 percent and a prime rate floor of 3.25 percent. Uplogix’s last twelve-month revenue...