Allot Ltd. (NASDAQ: ALLT) shares are witnessing a notable uptick of 5.88%, trading at $9.03 as of the latest check on Monday. The upward momentum follows a landmark agreement with a Tier-1 telecommunications operator in the EMEA region, sparking renewed investor interest in the cybersecurity and network intelligence provider.
Transformative Multi-Year EMEA Partnership
The signing of a long term multi-million dollar contract has been announced by Allot. Under this deal, the company will supply an integrated suite of network intelligence and cybersecurity solutions to support both fixed and mobile networks.
This includes Allot Smart services for traffic management, policy and charging control, analytics, and cybersecurity tools such as DDoS protection, anti-botnet measures, and reputation defense. The deployment will be powered by ALLT’s SG Tera-III platform, touted as the telecommunications market’s highest capacity multiservice gateway.
This agreement is Allot’s most substantial customer win in five years and reflects its growing prominence in EMEA as it executes its security-first strategy. The unified platform will deliver services across fixed fiber and mobile 4G/5G networks, targeting cost reduction in bandwidth access, delayed capacity expansions, and improved customer experience through automation.
Public Offering Strengthens Financial Position
In a concurrent financial development, Allot disclosed the pricing of a public offering involving 5,000,000 ordinary shares at $8.00 per share. Underwriters have been given a 30-day option to issue an extra 750,000 shares. An estimated $40 million in gross profits are anticipated from the transaction.
The company plans to utilize $31.41 million of the net proceeds to repay outstanding principal under a $40 million convertible note issued to its largest shareholder, Lynrock Lake Master Fund LP. The $8.59 million that remains will be changed into 1,249,995 common shares. Post-conversion, ALLT will carry no debt from borrowed capital, positioning itself for more robust operational flexibility.
Debt-Free Outlook Following Note Conversion
Lynrock and the offering’s underwriters have reached a 75-day lock-up agreement that applies to the converted shares. This development marks a significant shift in Allot’s balance sheet, effectively eliminating interest-bearing liabilities and enhancing shareholder value moving forward.
