Shares of Casa Systems Inc. jumped more than 82% on Monday after the company said Verizon Communications Inc. will buy about $40 million worth of shares in Casa, taking a nearly 10% stake in the company.
Casa, which offers physical, virtual and cloud-native fifth-generation tele-communications infrastructure, said it has also received a multi-year contract from Verizon in which it will provide its 5G Core Network Functions to Verizon.
"Our cloud-native approach is at the foundation of today's agreement and represents an important pivot in the telecommunications industry," Casa Chief Executive Jerry Guo said.
Shares of Casa rose more than 82% to $7.10 a share on Monday. The stock had fallen more than 31% so far this year.
