Communications Systems, Inc. Acquires Ecessa Corporation

Communications Systems, Inc. (NASDAQ: JCS) (“CSI” or the “Company”), an IoT intelligent edge products and services company, today announced that it has completed the acquisition of privately-held Ecessa Corporation (“Ecessa”).

Based in Plymouth, MN, Ecessa designs and distributes software-defined wide area networking (SD-WAN) solutions for businesses through the deployment of over 10,000 field installations (since 2002) of Ecessa Edge, PowerLink, and WANworX controllers.

Roger Lacey, CEO of CSI noted, “Ecessa fits perfectly with our vision of becoming a leading provider of IoT intelligent edge products and services. Once fully integrated, Ecessa’s acquisition will provide greater sales opportunities to expand our services platform and offer cost synergies by complementing the existing network of products and services of JDL and Net2Edge. As our industry continues to evolve, we remain committed to innovations and are constantly looking for opportunities that will deliver the right services to our clients.”

Mr. Lacey added, “Our healthy balance sheet and strong cash position support our 2020 growth strategy of focusing on high margin / recurring sales business models where ‘software as a service’ becomes an increasing proportion of future revenue. As our team continues to develop easy-to-use / easy-to-integrate applications and services, we are working to develop an ecosystem of partnerships and at the same time seeking additional attractive acquisitions/merger opportunities.”

Mike Siegler, who has been serving as CEO of Ecessa, will continue leading that group and also serve as a General Manager for CSI. Mr. Siegler added, “This merger enables Ecessa to build on an 18-year track record of providing industry leading customer support and innovative network products in the IT infrastructure space. Serving the SD-WAN market, we have seen the network edge rapidly change, becoming more intelligent and more critical to everyday business. With CSI, we have more of the technology customers are looking for, more sales channels to engage with, and more global reach and support capabilities. CSI and Ecessa are truly stronger, together. Our customers will experience that on day one.”