Casa Systems, Inc. (NASDAQ: CASA) is engaged as a technology leader in physical and cloud-based infrastructure solutions for mobile, cable, and fixed network providers. Shares of the communications technology company are soaring 65% through early trading on Monday, April 18, 2022. Over the past three months, Casa Systems has seen average daily volume of 182,390 shares. However, volume of 103.27 million shares or dollar volume of around $682.61 million, has already exchanged hands through early trading.
Shares of Casa Systems are surging after the company announced that it has been awarded a multi-year purchase contract from Verizon Communications, Inc. (NYSE: VZ). Under the contract, Casa Systems will provide its 5G Core Network Functions to Verizon for the mobile giant’s Mobile Edge Computing (MEC) service. MEC technology allows clients to move computing resources onto cloud servers at the network edge.
In conjunction with the contract award, Verizon will place an equity investment in Casa Systems of around $40 million. This will give Verizon an ownership stake of 9.9% in the communications technology company.
“This announcement is an important milestone for our 5G Core and Security Gateway technology, as well as the growth potential of our business,” said 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.”
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