19 February 2010


JDSU to acquire Agilent’s Network Solutions Test Business

Last week, optical component maker JDSU of Milpitas, CA, USA said it had entered into a definitive agreement to acquire the Network Solutions communications test business of Agilent, including the unit’s Long Term Evolution (LTE), or 4G, network verification and deployment products, for $165m in cash. The transaction is expected to close in June this year, subject to receipt of customary regulatory approvals.

For fiscal 2009 (ended 31 October 2009), the unit being acquired had annual revenue of $162m from global sales of service assurance monitoring systems, drive test and protocol test instruments.  JDSU expects the acquisition to be accretive to non-GAAP earnings per share on a quarterly basis and for the full fiscal year, starting in fiscal 2011.

“This acquisition establishes JDSU as a market leader in wireless test instruments and systems and enables us to provide customers with new innovative LTE solutions as they deploy this next-generation mobile data technology,” said Tom Waechter, president and chief executive officer of JDSU.

JDSU adds that the acquisition significantly expands its communications test position, particularly in the emerging market for LTE/4G solutions required by wireless service providers and network equipment manufacturers upgrading to this next-generation technology. More than 50 wireless service providers worldwide have announced plans to deploy LTE, including such companies as AT&T, Bell Canada, China Telecom, China Mobile, T-Mobile Germany, NTT DoCoMo and Verizon Wireless. Test products are used throughout the LTE development, deployment and operational life-cycle, says the firm.

The Agilent unit has approximately 700 employees with business operations located in Colorado, USA, the UK, Singapore and Beijing.   

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