Casa receives multi-year purchase contract from Verizon; stock jumps 70%

Casa Systems Inc. (NASDAQ: CASA) stock is up 70% after announcing a multi-year purchase from Verizon (NYSE: VZ). Additionally, Verizon is expected to invest around $40 million in Casa Systems’ common shares, which will result in a 9.9% ownership interest.

Casa’s 5G Core Network Functions to power Mobile Edge Compute

Jerry Guo, CEO of Casa Systems, said:

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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.

Casa Systems could provide Verizon with its 5G Core Network Functions as part of the contractual arrangement, which will assist power the company’s primary Mobile Edge Compute (MEC) services business. Mobile Edge Computing (MEC) solution delivers computing capabilities to the cloud at the network edge, as near to data sources as possible.

The company’s 5G Core and Security Gateway tech and its development prospects have reached a watershed moment with this announcement. Guo added:

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.

Casa is instrumental in Verizon’s 5G and MEC ecosystem

Verizon Global Networks and Technology network Kyle Malady commented:

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. 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.

Casa offers core-to-client building blocks that will accelerate 5G transformation with cutting-edge bandwidth and future-proof solutions. The company’s assortment of cloud-native offerings unlocks several ways for providers to create networks without boundaries and optimize revenue generation. Currently, the company’s systems are deployed in over 70 nations and serve more than 475 Tier 1 provider globally.