FIRB approves proposed $161m NetComm buyout

Australia's Foreign Investment Review Board (FIRB) has approved the proposed $161 million buyout offer for Australian telecommunications equipment company NetComm Wireless from US-based Casa Systems.

The FIRB has issued a notice confirming that the Treasurer has no objection to Casa Systems' acquisition of a 100% stake in NetComm Wireless for $1.10 per share.

The proposed takeover offer will now be taken to NetComm shareholders for a vote that is expected to be held in June.

NetComm's board has unanimously recommended that shareholders accept the takeover offer — in the absence of a superior proposal emerging and subject to an independent expert's recommendation. Each board member has indicated they intend to vote their shares in favour of the proposal if these conditions are met. The proposed deal also still requires court approval.

Casa Systems first made the $1.10 per share takeover offer in February.

At the time, NetComm interim CEO Steve Collins said the support of Casa Systems will help the company further develop its 5G customer premises equipment (CPE) technologies, including its 5G Fixed Wireless Self-Install technology.

Casa Systems plans to add NetComm's 5G CPE equipment to its existing product portfolio to enable the company to offer a full end-to-end solution for telecommunications service providers seeking to deploy 5G fixed wireless services.

Image courtesy NetComm.

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