5th Mar 2021 08:22
(Alliance News) - Spirent Communications PLC on Friday said it has acquired US-based automated wireless test solutions provider octoScope Inc for USD55 million on a debt and cash free basis.
The Crawley, England-based company is a provider of testing, analytics and security for telecommunications networks.
Spirent said the deal formed part of the investment and merger and acquisitions plan that it outlined at its Capital Markets Day in October and strengthens its position in Wi-Fi and 5G test markets. octoScope will be incorporated into Spirent's Lifecycle Service Assurance operating segment.
The acquisition will be funded from Spirent's existing cash resources. An additional consideration of USD18 million will be paid based on annual revenue growth targets for 2021 and 2022, and retention of key staff.
"This acquisition supports our strategy of sustainable, profitable growth by establishing Spirent as the firm market leader in the expanding Wi-Fi space, adding to our 5G solution portfolio. octoScope brings to us an impressive and well-known customer base, providing us with the opportunity to further leverage our established global routes to market and trusted relationships with our key accounts," said Chief Executive Eric Updyke.
Shares in Spirent were up 5.3% at 240.50 pence in London on Friday.
By Zoe Wickens; [email protected]
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