(Casa Systems) Shares of Casa Systems Inc. rose more than 58% on Monday after being awarded a multi-year 5G contract by Verizon.
Under the deal, Casa Systems will provide Verizon with its 5G Core Network Functions to power the latter’s Mobile Edge Compute service offering.
The deal will see Verizon take a 9.9% ownership stake in Casa Systems, representing about $40 million in equity investments in the company’s common stock.
Casa Systems President and CEO Jerry Guo lauded the deal as an important milestone in the company’s 5G Core and Security Gateway technology.
Verizon said the deal affirms its confidence in Casa in cloud-native technology and expects to look to a joint innovation for the technology in the years to come.
CASA: NASDAQ is up +58.61%, VZ: NYSE is up +0.65%
