D&S this year became Mako's main North American distribution partner, the company said in a statement this morning.
Several of Mako's Networks senior managers will stay on with D&S after the sale and research and development operations will stay in New Zealand.
"[D&S] will retain several of Mako's senior managers, including company founders Chris Massam and Simon Gamble, and will hire core members of the R&D team. It will look to hire further R&D staff in New Zealand to continue product development and enhancement.
"In working with Mako over the last two years we've come to respect the technology and the deep knowledge the team has about keeping networks secure and have an extremely high regard for their unique and highly robust approach to network security and compliance. Given our history with Mako, we're a natural fit as a purchaser," said Jason Kubasak, chief executive of D&S Communications.
"We were made aware of the company's financial position when we undertook due diligence and developed a business continuity plan in the event of an insolvency. When that plan was triggered we considered our options and decided that, rather than merely exercising our right to continue to provide products and support in North America, we would invest further in the business and seek to acquire the assets in their entirety," he said.