Strengthens DZS Mobile Transport portfolio and expands Tier 1 North America customer base

Plano, Texas, USA, Jan. 20, 2021 –  DZS (NASDAQ: DZSI), a global leader of mobile transport, broadband access and enterprise networking solutions representing communications service providers and enterprise customers in more than 100 countries, today announced it has signed a definitive agreement to acquire Optelian, a leading optical networking solution provider based in Ottawa, Ontario, Canada, and its portfolio of optical transport solutions. The Optelian solutions have completed the Telcordia OSMINE certification process required for deployment by Tier 1 service providers in North America and will form a new DZS “O-series” product line that will enhance the DZS Mobile Transport portfolio with environmentally hardened optical transport products optimized for mobile backhaul. Optelian’s optical transport solutions will complement DZS’s market-leading 4G / 5G xHaul Mobile Transport portfolio that are currently deployed in five Tier 1 mobile networks. The new line-up of optical transport products will also add metro and regional aggregation and transport options for Broadband Access solutions. In addition to intellectual property and products, the transaction will bolster DZS R&D, operations, sales and corporate functions.

“After joining DZS in August of 2020, we established a playbook that began with the best talent, and quickly transitioned to technology, innovation and marquee customers around the world,” said Charlie Vogt, CEO of DZS. “The acquisition of Optelian will uniquely distinguish us from the traditional Edge Access Mobile and Broadband suppliers and accelerate our path forward with Tier 1 service providers in North America. I am pleased at the prospect of welcoming the Optelian employees to DZS, a team that will bring unique North America development and integration experience in the areas of ultra-high speed coherent optics and environmentally hardened transport solutions.”

The acquired assets will enhance the DZS xHaul and broadband access solutions portfolios with optical systems that complement the extensive DZS portfolio of packet-based products. The result will be a comprehensive solutions portfolio with both optical and packet-based networking options that can deliver world-class performance, flexibility, scalability and ultra-low latency to the fast growing 5G and 10gig-class optical broadband markets worldwide. In addition, the O-series products will bring advanced thermal design and carrier grade reliability, making them the first 100G and above transport solutions to deliver flexibility for network edge, remote and industrial deployment scenarios. Optelian has historically provided dynamic, carrier-grade optical networking solutions to many of the largest service providers in North America, and DZS will bring a wider array of resources, solutions and services to these customers.

“Optelian is thrilled by the prospect of becoming part of a global leader like DZS, and feel that our innovative products and employees will be a great complement to their winning culture and world-class solutions,” said David Weymouth, CEO of Optelian. ”Our customers will clearly benefit from the inclusion of our products in a much broader solutions portfolio that includes complementary Mobile Transport and Broadband Access technologies, as well as Customer Premises equipment. We believe that the vision and direction that Charlie and team have established for DZS is poised to make waves in the industry, and it will be exciting to now be a catalyst to that growth and transformation.”

As a strategic technology supplier to many of the world’s most advanced 5G and Broadband networks, DZS is well-versed in the challenges of getting cutting-edge mobile technologies to market at scale. Success requires agility, including the ability to leverage assets already deployed in the field. As a leading provider of both traditional access, fiber and advanced mobile solutions, DZS is uniquely bridging the wireless and wireline worlds. Optelian products, with their exceptionally high performance and environmentally hardened form factors, will enable the DZS mobile transport portfolio to address a variety of new deployment scenarios and leap to the front of a specialized and growing segment of the market.

“Transport infrastructure must evolve to support the demanding capacity, performance, and reach requirements of 5G mobile networks,” said Julie Kunstler, Senior Principal Analyst at Omdia. “CSPs are concerned about cost and scaling for 5G transport, especially those pursuing aggressive deployment strategies and Open RAN architectures, according to Omdia research. Vendors are developing new optical transport solutions that meet the performance, cost, and scaling requirements of 5G transport, taking advantage of access, edge, and optics expertise.”

The financial terms of the transaction are not being disclosed at this time.

To learn more about DZS, visit https://www.dzsi.com

About DZS

DZS Inc. (NSDQ: DZSI) is global leader of mobile transport, broadband access and enterprise networking solutions with more than 20 million products in-service with customers and alliance partners spanning more than 100 countries.

DZS, the DZS logo, and all DZS product names are trademarks of DZS Inc. Other brand and product names are trademarks of their respective holders. Specifications, products, and/or product names are all subject to change.

This press release contains forward-looking statements regarding future events and our future results that are subject to the safe harbors created under the Private Securities Litigation Reform Act of 1995. These statements reflect the beliefs and assumptions of the Company’s management as of the date hereof. Words such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “forecast,” “goal,” “intend,” “may,” “plan,” “project,” “seek,” “should,” “target,” “will,” “would,” variations of such words, and similar expressions are intended to identify forward-looking statements. Readers are cautioned that these forward-looking statements are only predictions and are subject to risks, uncertainties and assumptions that are difficult to predict. The Company’s actual results could differ materially and adversely from those expressed in or contemplated by the forward-looking statements. Factors that could cause actual results to differ include, but are not limited to, those risk factors contained in the Company’s SEC filings available at www.sec.gov, including without limitation, the Company’s annual report on Form 10-K, quarterly reports on Form 10-Q and subsequent filings.  In addition, additional or unforeseen affects from the COVID-19 pandemic and the global economic climate may give rise to or amplify many of these risks. Readers are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date on which they are made. DZS undertakes no obligation to update or revise any forward-looking statements for any reason.

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