EXFO Electro-Optical Engineering Inc. announced today that it has signed an agreement to acquire substantially all ...
January 6, 2006
EXFO Electro-Optical Engineering Inc. announced today that it has signed an agreement to acquire substantially all the assets of Consultronics Ltd., including the shares of its subsidiaries in the UK and Hungary, in an all-cash transaction valued at $20.4 million.
EXFO will also assume approximately $600,000 in net debt from Consultronics and incur $1.8 million in other acquisition-related costs for a total purchase price of $22.8 million.
Consultronics, a privately held company founded in 1973 with headquarters in Toronto as well as operations in Southampton, U.K., and Budapest, Hungary, manufactures copper-based broadband access test equipment.
It ranks among the top three vendors in handheld x-Digital Subscriber Line (xDSL) testing with a global market share of 13.4%, according to an industry report from Frost & Sullivan.
The company also has a 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.
Other test products include network monitoring probes for VoIP and legacy telephone networks, Gigabit Ethernet/Ethernet analyzers for remote testing applications, as well as protocol and physical characterization instruments for local copper loops.
The company, which had revenues last year of $18.6 million, will be integrated into EXFO’s telecom division.