Casa Systems, Inc. (NASDAQ: CASA), a provider of physical and cloud-native infrastructure technology for mobile, cable and fixed networks, today announced that it has been awarded a multi-year purchase contract from Verizon.
Under the terms of the new commercial agreement, Casa Systems will provide its 5G core network functions platform to Verizon, helping to power that company’s public Mobile Edge Compute (MEC) service offering. MEC technology moves computing resources onto cloud servers at the network edge, as close as possible to places where data is generated.
"This announcement is an important milestone for our 5G core and security gateway technology, as well as the growth potential of our business,” commented Jerry Guo, president and CEO of Casa Systems. “Our cloud-native approach is at the foundation of today’s agreement and represents an important pivot in the telecommunications industry. Casa Systems is excited to be at the forefront of this shift towards a cutting edge, cloud-based strategy through this partnership with Verizon. This agreement validates our leadership in 5G core and MEC and positions Casa Systems as a key champion for cloud-native 5G infrastructure in the United States. I couldn’t be more proud of our team for all their hard work in helping us achieve this agreement.”
Also under terms of the new agreement, Verizon will make an investment of approximately $40 million in Casa Common Stock, resulting in a 9.9% ownership stake.
“Casa Systems is an important member of our 5G and MEC ecosystem, providing flexible applications that will allow us to scale up for our customers as real-time solutions continue to grow,” said Kyle Malady, president, Global Networks and Technology at Verizon. “We have confidence in Casa as a cloud-native technology partner and look forward to joint innovation as we scale the power of 5G and MEC in the years to come."