Product category: Stand-Alone Instruments
News Release from: Exfo Electro-Optical Engineering
Edited by the Electronicstalk Editorial Team on 9 January 2006
EXFO to acquire
assets from Consultronics
EXFO Electro-Optical Engineering has signed an agreement to acquire substantially all the assets of Consultronics, including the shares of its subsidiaries in the UK and Hungary
EXFO Electro-Optical Engineering has signed an agreement to acquire substantially all the assets of Consultronics, including the shares of its subsidiaries in the UK and Hungary, in an all-cash transaction valued at C $20.4million (US $17.7 million). EXFO will also assume approximately C $0.6 million (US $0.5 million) in net debt from Consultronics and incur approximately C $1.8 million (US $1.6 million) in other acquisition-related costs for a total purchase price of C $22.8 million (US $19.8 million).
This article was originally published on Electronicstalk on 9 January 2006 at 8.00am (UK)
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Acquisition concludes in record time
EXFO Electro-Optical Engineering has completed its acquisition of the assets of Consultronics, a leading supplier of test equipment for copper-based broadband access networks
Probe and software assure network quality
Network quality monitoring system aims to assure the user experience in packet-based IP networks delivering triple-play services
Consideration paid may vary according to the carrying value of the assets on the closing date of the acquisition, which is slated for mid-March.
The deal is expected to be neutral on a GAAP basis for the remainder of fiscal 2006 and accretive in fiscal 2007, taking into account approximately US $2.0 million per year in additional amortisation of intangible assets.
Consultronics, a privately held company founded in 1973 with headquarters/operations in Toronto as well as operations in Southampton, UK, and Budapest, Hungary, is a leading vendor of copper-based broadband access test equipment.
It ranks among the top three vendors in handheld xDSL testing with a global market share of 13.4%, according to an industry report from Frost and Sullivan.
The company also boasts a rich product portfolio for testing next-generation technologies, such as IPTV (Internet Protocol TV) and VoIP (voice-over-Internet Protocol), which are critical for network service providers in their deployment of triple-play services (voice, data, video) over optical and copper links in access networks.
Further reading
QoS capabilities added to test equipment
New features added to portable chip tester include user-configurable alarm thresholds for media delivery index (MDI) and other key IPTV metrics, as well as customisable test sequences
Network tester supports stacked VLANs
Exfo Electro-Optical Engineering has upgraded its FTB-8510G Packet Blazer 10 Gigabit Ethernet test module to support supports stacked virtual local area networks
Electro-optical company announces earnings
Exfo Electro-Optical Engineering has reported year-over-year increases in sales and net earnings for the second quarter ended 28th February, 2007
Other test solutions offered by Consultronics include network monitoring probes for VoIP and legacy telephone networks, Ethernet and gigabit Ethernet analysers for remote testing applications, as well as protocol and physical characterisation instruments for local copper loops.
'This acquisition is a highly strategic initiative to position EXFO as a genuine one-stop shop for broadband access and triple-play testing, since it greatly complements our market leadership in the FTTx market', said Germain Lamonde, EXFO's Chairman, President and CEO.
'Consultronics' strong product offering in handheld xDSL, IPTV and VoIP testing, combined with our leadership position in portable optical testing, will provide customers with a comprehensive suite of test solutions for triple-play deployments that is unmatched in our industry'.
'Ultimately, we believe the accretive nature of this deal, along with the strong inherent synergies involving sales channels, customer relationships and new test solutions, will increase shareholder value'.
'We are delighted to join forces with a market leader such as EXFO, which I have known and respected for a long time', said Consultronics President/CEO Andre Rekai, who is expected to remain as a consultant to EXFO after the transaction.
'Not only is it a strategic fit in terms of market-driven innovation and entrepreneurial spirit, but our leading-edge product portfolio will benefit from EXFO's global sales and marketing reach'.
Consultronics generated sales of C $18.6 million (US $15.3 million) and an EBITDA of C $1.6 million (US $1.3 million) for the 12 months ended 30th November 2005.
Its operations, which include approximately 130 employees worldwide, will be integrated into EXFO's Telecom Division.
The acquisition has been approved by the board of directors of both companies, but it is subject to customary closing conditions.
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