Lantronix has announced an agreement to acquire the assets of Vecima Networks industrial IoT business, including its Nero Global Tracking software-as-a-service platform. The transaction is expected to close in the near term, subject to customary closing conditions.
The acquisition adds approximately $5.3 million of total revenue, including $4.5 million of annual recurring revenue (ARR) and approximately 125,000 asset tags under management, with gross margins in the high-60% range. It increases Lantronix’s Software & Services mix to more than 10% of total company revenue.
Nero Global Tracking provides GPS-based vehicle and asset tracking for fleet operators, municipalities, restoration contractors and industrial customers throughout North America. The acquisition expands Lantronix’s critical infrastructure monitoring vertical with an established North American customer base in the fleet, municipal, restoration and industrial asset-tracking markets.
The deal adds a SaaS application layer to Lantronix’s edge hardware and connectivity portfolio. It strengthens the company’s full-stack value proposition by integrating application-layer domain expertise with its hardware, connectivity, firmware and edge compute products. The combination is expected to support integrated solutions for fleets, municipal infrastructure, restoration contractors and industrial asset monitoring.
Total consideration for the transaction is approximately $11.5 million USD, excluding working capital and other customary adjustments and excluding acquisition-related costs. Approximately 30 employees from the IIoT team will join Lantronix, adding domain expertise in SaaS-based asset tracking, customer support and application-layer software development.
Nero Global Tracking customers and channel partners can expect continuity in service, support and product roadmap. Over time, they will gain access to Lantronix’s broader IIoT portfolio, including opportunities to integrate Nero Global Tracking with Lantronix hardware, connectivity and edge compute products.
“This acquisition is consistent with our platform strategy and advances exactly where we are looking to take Lantronix: toward higher-margin, recurring-revenue solutions that combine our edge hardware, connectivity and software capabilities,” said Saleel Awsare, President and CEO of Lantronix. “At the same time, it complements the strength we are seeing in our drone and aerospace & defense business by expanding into another high-value growth vertical: critical infrastructure monitoring. Nero brings a proven SaaS application layer, established North American customers, and approximately 125,000 asset tags under management, while Lantronix brings the edge hardware, secure connectivity, and firmware expertise needed to deliver a more complete solution for customers managing mission-critical assets.”
Awsare continued: “The market increasingly demands intelligent platforms that enhance the value of connected hardware and can turn one-time device sales into long-term, recurring customer relationships. By bringing the application layer in-house, we gain greater ability to customize firmware, optimize device behavior, and solve customer-specific use cases across fragmented industrial IoT environments. We believe this will strengthen our value proposition, increase customer stickiness, and will position Lantronix to pursue larger opportunities across critical infrastructure and industrial IoT.”
“Lantronix is the right home for this business,” said Sumit Kumar, President and CEO of Vecima Networks. “This transaction gives our IIoT team, customers, and channel partners access to a larger global platform with a more comprehensive, end-to-end solution. It brings together industry-leading hardware, connectivity, and application software under one roof. With additional resources to support innovation and growth, we’re confident our customers will benefit from an even stronger value proposition, while also allowing Vecima to sharpen its focus on its core broadband and video markets.”
