Zhone Technologies Successfully Acquires DZS Assets to Strengthen Broadband Solutions

Zhone Technologies Completes Acquisition of DZS Assets



Zhone Technologies, Inc., a leading name in fiber-optic broadband solutions, has made headlines by successfully concluding its acquisition of substantially all assets of DZS, Inc. and its affiliated companies. This deal is seen as a strategic move aimed at bolstering Zhone's already strong position in the global telecom market.

The transaction, which finalized on May 1, 2025, was approved by the United States Bankruptcy Court for the Eastern District of Texas. The acquisition includes not just technology and intellectual property, but also lab facilities, IT systems, and crucial customer and supplier contracts from DZS.

Clayton Zekelman, Chairman and CEO of Zhone, expressed his excitement about the acquisition, noting the hard work put in by the team throughout the bankruptcy proceedings to reestablish partnerships with third-party developers and manufacturers. These collaborations are vital for obtaining essential silicon chip technologies, which will support Zhone’s long-term growth strategy.

In an additional layer of this acquisition, Zhone has opted to take over all shares of four international subsidiaries of DZS, including DZS International, DZS Canada, and others. This acquisition aligns perfectly with Zhone's overarching goal of acquiring DZS's assets globally. The incorporation of these international subsidiaries is expected to provide Zhone with enhanced capabilities, particularly in offering Fiber Extension Distribution Point Unit solutions, Fixed Wireless Access solutions, and advanced WiFi Gateway and Access Point solutions.

The acquisition was initially communicated via a letter of intent on April 7, 2025, with the intent of reinforcing Zhone's standing as a formidable player in the fiber-optic broadband industry. By acquiring the assets associated with DZS's well-regarded technology offerings, such as Velocity™ Optical Line Terminal Systems and Helix™ Optical Network Terminals, Zhone is set to enhance its portfolio significantly.

Zhone Technologies will operate from its headquarters in Plano, Texas, and is committed to maintaining high-quality service for its existing clientele while integrating key technological innovations. The company also plans to rehire many previous DZS employees to ensure that the organization retains its accumulated expertise and continues to deliver on its commitments effectively.

Immediate priorities for Zhone will focus on the restoration of technical support services and the reestablishment of supply chain operations to meet outstanding demand from customers and partners who have shown remarkable patience throughout this transition period. A crucial part of this realignment includes the execution of customer care and success programs, which have been part of Zhone's service model for over 25 years.

Moving forward, Zhone intends to shift towards expansion, welcoming new clients, and forming strategic partnerships that emphasize innovation and advancement in fiber broadband solutions. Zhone’s strategic vision emphasizes continued product development that meets the evolving demands of the global market.

In terms of legal and advisory support, Zhone Technologies had assistance from Bennett Jones LLP and Dykema Gossett PLLC during this transaction. Additionally, Charlie Vogt, the former CEO of DZS, provided consulting services throughout the acquisition process.

About Zhone Technologies, Inc.


Zhone Technologies is recognized globally for its excellence in fiber optic broadband solutions and cloud software services. With over 25 years of innovation, Zhone is dedicated to enhancing the growth of the FTTx and cloud software markets, strategically placing itself in a competitive position for the future of telecommunications.

Zhone’s commitment to delivering high-performance, innovative solutions sets the stage for its continued success as a leader in the telecom industry.

Topics Telecommunications)

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