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Spirent to Buy SwissQual
Spirent acquires wireless test and measurement firm SwissQual Holding for £27.7M
January 23, 2006
2 Min Read
LONDON -- Spirent plc (LSE: SPT; NYSE: SPM), a leading communications technology company, today announces that it has entered into an agreement to acquire SwissQual Holding AG (“SwissQual”), a leading Swiss based provider of innovative test and measurement solutions for wireless telecoms markets.
Highlights:
Agreement to acquire SwissQual for an initial consideration of CHF62.5 million ( £27.7 million), payable in cash on completion with up to a further CHF 28.0 million (£12.4 million) payable depending on revenue growth and various technical and financial milestones.
SwissQual brings to Spirent world class products and talent in the development of voice and video solutions that analyse, measure and improve the quality of experience for users of wireless applications and services.
SwissQual will enhance Spirent’s wireless market presence principally by:
bringing it into a new and growing market – “Subscriber Experience Management” for wireless networks;
enabling Spirent’s entry into the video intensive handset applications testing market through access to new technology ; and
broadening its geographic coverage and expanding its customer base.
SwissQual will be incorporated within the Performance Analysis division and its experienced management team will continue to manage the business.
The acquisition is expected to be earnings enhancing in Spirent’s current financial year ended 31 December 2006. The acquisition will be financed from Spirent’s cash resources and bank facilities.
SwissQual is a profitable and fast growing business, reporting EBITA of CHF 5.5 million on revenues of CHF 32.1 million in its financial year ended 31 December 2005, up 38 per cent compared to 2004.
Anders Gustafsson, Chief Executive, commented:“Spirent’s transformation continues with the acquisition of SwissQual now following the recent announcement of the proposed disposal of HellermannTyton.
“The acquisition is in line with our strategy to expand our wireless communications business, drive profitable growth and deliver shareholder value.
“SwissQual will broaden our wireless footprint and accelerate our entry into a new and growing market. It is expected to be earnings enhancing in 2006 and should provide good organic growth opportunities and deliver synergies with our existing portfolio of businesses.”
Spirent Communications plc
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