MNSi has signed an LOI to acquire the DZS assets in a bankruptcy case pending in the United States Bankruptcy Court for the Eastern District of Texas
WINDSOR, Ontario, CANADA, April 7, 2025 – MNSi (Managed Network Systems, Inc.) a leading fiber optic internet service provider in Windsor, Ontario, today announced its intention to acquire substantially all of the assets of DZS Inc., DZS Services, and DZS California including but not limited to Technology, Intellectual Property, Lab Facilities, IT Systems, Customer and Supplier Contracts. MNSi will also seek to engage many of the current and former employees. MNSi may also acquire DZS International Inc., DZS Canada and DZS India, which are not in bankruptcy.
MNSi intends to establish a new corporate entity in the United States under the brand Zhone. The new Zhone will be headquartered in Plano, Texas, and will leverage the past 25 years of disruptive innovation invested across the market-leading DZS Velocity Optical Line Terminal Systems, DZS Saber Optical Transport Systems, DZS Helix Optical Network Terminals, Gateways and Access Points as well as DZS Xtreme Cloud Management, Automation and Orchestration Software portfolio.
The new Zhone’s mission over the first 30-90 days will be to restore customer support and fulfill its committed backlog to its valuable customers and channel partners. MNSi has opened an email portal to facilitate new prospective employee inquiries at Zhone@MNSI.net. The proposed transaction will be subject to the approval of the United States Bankruptcy Court, Eastern District of Texas at a hearing currently scheduled for April 28th and closing shortly thereafter.
“MNSi has been a technology innovation partner and customer of Zhone since 2001,” said Clayton Zekelman, Founder and CEO of MNSi. “We thoroughly understand the challenges the company endured since its financial restatement in 2023 and the broader broadband industry’s supply chain dynamics following the COVID era. The former management team were PON and cloud software technology trailblazers as evidenced by the numerous new customer design wins, acquisitions, and technology champions represented by their Innovation Advisory Board. Our mission will be simple: innovate, execute and deliver. We aim to accelerate the rehiring, on-boarding and reestablishment of renewed partnerships with third-party development, silicon chip technology, IT systems, manufacturing and global channel partners as a number one priority.”
As the broadband access industry begins to normalize after recent challenges with supply chain driven excess inventory and as numerous broadband government-led stimulus programs begin to emerge, the new Zhone will reemerge as a financially stable technology challenger across the FTTx and cloud software market.”
Larry Levick, Michelle Shriro and Todd Hoodenpyle of Singer & Levick, P.C. (www.singerlevick.com) serve as General Counsel to the duly appointed Trustee, and Shauna Martin, Mary Elizabeth Heard, and Eddie Martin of Grable Martin PLLC (www.grablemartin.com) serve as Special Counsel to the Trustee related to the sale of the assets, intellectual property matters and securities compliance.
Charlie Vogt (charlie@normandylane.com), former CEO of DZS, ATX Networks, Harris Broadcast/Imagine Communications and GENBAND/Ribbon Communications has been and continues to be a valuable advisor to the Trustee, Grable Martin and Singer & Levick regarding the sale of the DZS assets.
About Clayton Zekelman
Clayton Zekelman is the founder and CEO of Managed Network Systems as well as other telecommunication companies based in Ontario, Canada. Along with his two brothers, Barry and Alan Zekelman, they collectively own their family’s steel enterprise, Zekelman Industries. Zekelman Industries is a major player in the North American steel pipe and tube manufacturing sector.
MNSi is advised by Curtis Cusinato (CusinatoC@bennettjones.com), Kevin Zych (ZychK@bennettjones.com) and Jessica Thrower (ThrowerJ@bennettjones.com) with Bennett Jones and Deborah Williamson (dwilliamson@dykema.com) and Willhelm Liebmann (wliebmann@dykema.com) with Dykema Gossett.
For real-time information visit DZS website at https://dzsi.com