Acquisition
Spirent PLC
13 February 2006
SPIRENT PLC
ACQUISITION OF QUADTEX SYSTEMS, INC
London, UK - 13 February 2006: Spirent plc (LSE: SPT; NYSE: SPM), a leading
communications technology company, today announces that it has acquired QuadTex
Systems, Inc ('QuadTex'), a fast growing US based provider of innovative and
leading test tools for internet protocol multimedia subsystem ('IMS') and voice
over IP ('VoIP') testing.
Spirent is paying an initial consideration of US$7.5 million (£4.2 million),
payable in cash on completion with up to a further US$1.5 million (£0.9 million)
payable depending on certain technical milestones and the retention of key
employees.
In addition to being an excellent strategic fit with Spirent's existing
businesses, QuadTex will enhance and be a key contributor to its solutions for
triple play, VoIP and IMS testing. IMS, which is being driven by fixed mobile
convergence ('FMC'), requires comprehensive and flexible protocol testing tools.
Unlike existing tools, QuadTex provides highly flexible and easy to use protocol
test systems allowing users to test the functionality and interoperability of
IMS systems. The need for testing new protocols or modified versions of existing
protocols for FMC and IMS deployment is a market that Spirent has identified as
a key area of focus.
The acquisition is in line with Spirent's stated strategy to make selective
acquisitions as it focuses on its communications activities following the
recently proposed disposal of HellermannTyton. Synergies are expected to be
generated through cross-selling, the integration of products to provide
compelling solutions, and through the further broadening and deepening of
customer relationships.
QuadTex, which has grown rapidly since being founded in 2002, is based in
Dallas, Texas and employs 14 people. It also has a development office in China.
Shipment of its products began in the second half of 2004 and sales in 2005
totalled US$2.0 million with rapid growth expected in 2006. The business was
cash positive and also traded profitably in 2005. Customers include Cisco,
Ericsson, NTT and AT&T with revenues earned principally in the USA, with a
contribution from both Asia and Europe. The founders are expected to continue to
manage the business which will be incorporated within Spirent's Performance
Analysis division.
Anders Gustafsson, Chief Executive, commented:
'Spirent's transformation continues with the acquisition of QuadTex now
following the recent acquisition of SwissQual and the announcement of the
proposed disposal of HellermannTyton.
'The acquisition is in line with our strategy to expand our communications
business, drive profitable growth and deliver shareholder value.'
- ends -
Enquiries
Anders Gustafsson, Chief Executive Spirent plc +44 (0)1293 767676
Eric Hutchinson, Finance Director
Reg Hoare Smithfield +44 (0)20 7360 4900
Katie Hunt
Photography is available from UPPA (Universal Pictorial Press & Agency) -
www.uppa.co.uk or tel: 020 7421 6000
About Spirent
Spirent is a leading communications technology company focused on delivering
innovative systems and services to meet the needs of customers worldwide. We are
a global provider of performance analysis and service assurance solutions that
enable the development and deployment of next-generation networking technologies
such as broadband services, Internet telephony, 3G wireless and web applications
and security testing. The Network Products business is a developer and
manufacturer of innovative solutions for fastening, identification, protection
and connectivity in electrical and communications networks marketed under the
global brand HellermannTyton. The Systems group develops power control systems
for specialist electrical vehicles in the mobility and industrial markets.
Further information about Spirent plc can be found at www.spirent.com
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and on the New York Stock Exchange (ticker: SPM; CUSIP number: 84856M209) in the
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Receipts, with one ADS representing four Ordinary shares.
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