Spirent PLC
17 October 2000
773 - 17 October 2000
ACQUISITION ENHANCES SPIRENT'S
OPTICAL NETWORK MONITORING CAPABILITIES
Spirent plc, the international network technology company, announces that it
has entered into a conditional agreement to acquire the entire share capital
and outstanding options of Net-HOPPER Systems Inc ('Net-HOPPER') of Norcross,
Georgia for $85 million and a further potential performance-related
consideration of up to $10 million, both payable in Spirent plc Ordinary
shares. The acquisition is expected to be earnings-enhancing before goodwill
amortisation in the first full year.
Net-HOPPER is a leader in Network Test Access Systems (NTAS) and provides a
physical layer solution for copper, digital and fibre optic broadband networks
that is compatible with all protocols and transmission speeds. Its electronic
and recently-introduced CRYSTALhopper TM all-optical matrix switches provide
non-intrusive access to network traffic; and its award-winning open
architecture PATHmaster TM software allows these circuits to be tested by
remote performance analysis equipment controlled from a central Network
Management Centre. This avoids the time and cost associated with visits by
engineers to remote sites to diagnose network problems. Net-HOPPER's systems
are being deployed by a number of service providers, internet service
providers and enterprise network operators.
Spirent has built a world leading position in Network Equipment performance
analysis systems, focused on supporting customers in the development
laboratories of the hardware manufacturers and service providers for all
technologies and network types. This equipment is now also being used in the
live network to monitor performance and provide measurement of network quality
of service. This network monitoring market has been identified as having
strong technological and commercial synergies with Spirent's existing
activities and is a focus for strategic development.
Net-HOPPER employs 35 people and will continue to be operated post-acquisition
by existing management. Revenues for the year to December 2000 are expected
to be around $7 million with rapid growth anticipated from its newly-
introduced products.
Commenting on the acquisition, Nicholas Brookes, Chief Executive of Spirent
plc, said:
'Net-HOPPER is a small but important move for us into the network monitoring
field. Its innovative network test access systems are already being used by
customers in conjunction with our AX/4000 performance analyser. We believe
that the ability to provide an integrated access and analysis solution will
accelerate the success of both businesses, and would complement other
development initiatives in the network monitoring market.'
The total number of new shares to be issued to meet the final acquisition
price will be determined by the average price of a Spirent plc share over a
period of 30 business days ending three business days prior to the closing of
the deal. Approximately 50 per cent of the shares issued at closing must be
retained by the vendors for at least 18 months. The deal is expected to close
in November.
Enquiries:
Nicholas Brookes, Chief Executive Spirent plc +44 (0)1293 767676
Eric Hutchinson, Finance Director
Jon Coles/Rupert Young Brunswick (London) +44 (0)20 7404 5959
Sara Strong/Nina Pawlak Brunswick (New York) +1 212 333 3810
Background note:
Spirent plc is an international network technology company providing state-of-
the-art solutions with a focus on high growth, high margin activities. It is a
world leader in advanced telecommunications testing systems and network
products. www.spirent.com
Spirent is quoted on the London Stock Exchange, ticker SPT, and is a FTSE 100
company. It is classified in the Information Technology Hardware sector. The
Company operates a Level 1 American Depository Receipt programme (ticker:
SPNUY; CUSIP number: 84856M100). For information, contact Brian Heston, The
Bank of New York, American Depositary Receipts, 101 Barclay St, 22 West, New
York, NY 10286 Phone: (212) 815 3938, Fax: (212) 571 3050, email:
bheston@bankofny.com web site: www.adrbny.com
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