Minim-Zoom Telephonics merger now official
Minim, a Wi-Fi network and security management company started up by Dyn co-founder Jeremy Hitchcock, is merging with Boston-based Zoom Telephonics, a publicly traded company that that sells retail cable and modems under the Motorola brand.
Under the deal, the companies will combined in a non-cash stock transaction that values Minim at $30 million. The deal is expected to close by the end of 2020.
Zoom Telephonics was founded in 1977 in Boston. The company delivers cable modems, routers, and other communications products under the globally recognized Motorola brand, according to a news release. As part of a yet-to-be disclosed rebranding, the Zoom ticker symbol will change.
The rebranded company will combine under a new leadership team led by Minim CEO Gray Chynoweth, another Hitchcock, Minim’s chair.
Zoom Telephonics previously reported that three of its directors – including company co-founder Frank Manning – would be retiring and selling their shares in the company. The company’s former CEO, Joe Wytanis, stepped down from the job in May.
Speaking on Zoom Telephonics’ Q3 earnings call Nov. 12, Hitchcock said the combined company will offer an integrated package of connectivity hardware outfitted with Wi-Fi management and security software that, he said, will establish a more valuable product.
“The consumer networking space has a profound need for security and network management, especially given the rise of remote working and smart home devices,” said Hitchcock. “By integrating our collective IP and product development roadmap, we are offering greater performance, innovation, and price with a globally-recognized technology brand.”
He added, “We’re very excited about the opportunities this business combination makes possible for us in addressing a multi-billion dollar global market.”
Chynoweth said the merger will result in a company that focuses on hardware and software using Minim’s subscription revenue model for Wi-Fi and security systems and software.
“The combined company’s end-to-end product expertise, industry relationships, and subscription service model is expected to dramatically accelerate our ability to drive value for our customers and return for our shareholders,” he said.
Minim has largely focused on direct sales to wireless internet service providers. It reports working with over 120 ISPs that serve some 2.35 million customers. Zoom’s direct-to-consumer channels include such retailers as Amazon, Best Buy, Target and Walmart. The combined company will also leverage Minim’s established partner relations with the Microsoft Airband Initiative, a program designed to close the digital divide, security provider Irdeto and Telarus, the largest privately held IT product distributor in the U.S.