Casa receives multi-year purchase contract from Verizon; stock jumps 70%

Casa Systems Inc. (NASDAQ: CASA) stock is up 70% after announcing a multi-year purchase from Verizon (NYSE: VZ). Additionally, Verizon is expected to invest around $40 million in Casa Systems' common shares, which will result in a 9.9% ownership interest.

Casa’s 5G Core Network Functions to power Mobile Edge Compute

Jerry Guo, CEO of Casa Systems, said:

Casa Systems could provide Verizon with its 5G Core Network Functions as part of the contractual arrangement, which will assist power the company's primary Mobile Edge Compute (MEC) services business. Mobile Edge Computing (MEC) solution delivers computing capabilities to the cloud at the network edge, as near to data sources as possible.

The company's 5G Core and Security Gateway tech and its development prospects have reached a watershed moment with this announcement. Guo added:

Casa is instrumental in Verizon's 5G and MEC ecosystem

Verizon Global Networks and Technology network Kyle Malady commented:

Casa offers core-to-client building blocks that will accelerate 5G transformation with cutting-edge bandwidth and future-proof solutions. The company's assortment of cloud-native offerings unlocks several ways for providers to create networks without boundaries and optimize revenue generation. Currently, the company's systems are deployed in over 70 nations and serve more than 475 Tier 1 provider globally.