13th Feb 2006 07:01
Spirent PLC13 February 2006 SPIRENT PLC ACQUISITION OF QUADTEX SYSTEMS, INC London, UK - 13 February 2006: Spirent plc (LSE: SPT; NYSE: SPM), a leadingcommunications technology company, today announces that it has acquired QuadTexSystems, Inc ("QuadTex"), a fast growing US based provider of innovative andleading test tools for internet protocol multimedia subsystem ("IMS") and voiceover 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 keyemployees. In addition to being an excellent strategic fit with Spirent's existingbusinesses, QuadTex will enhance and be a key contributor to its solutions fortriple play, VoIP and IMS testing. IMS, which is being driven by fixed mobileconvergence ("FMC"), requires comprehensive and flexible protocol testing tools.Unlike existing tools, QuadTex provides highly flexible and easy to use protocoltest systems allowing users to test the functionality and interoperability ofIMS systems. The need for testing new protocols or modified versions of existingprotocols for FMC and IMS deployment is a market that Spirent has identified asa key area of focus. The acquisition is in line with Spirent's stated strategy to make selectiveacquisitions as it focuses on its communications activities following therecently proposed disposal of HellermannTyton. Synergies are expected to begenerated through cross-selling, the integration of products to providecompelling solutions, and through the further broadening and deepening ofcustomer relationships. QuadTex, which has grown rapidly since being founded in 2002, is based inDallas, 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 2005totalled US$2.0 million with rapid growth expected in 2006. The business wascash positive and also traded profitably in 2005. Customers include Cisco,Ericsson, NTT and AT&T with revenues earned principally in the USA, with acontribution from both Asia and Europe. The founders are expected to continue tomanage the business which will be incorporated within Spirent's PerformanceAnalysis division. Anders Gustafsson, Chief Executive, commented: "Spirent's transformation continues with the acquisition of QuadTex nowfollowing the recent acquisition of SwissQual and the announcement of theproposed disposal of HellermannTyton. "The acquisition is in line with our strategy to expand our communicationsbusiness, drive profitable growth and deliver shareholder value." - ends - Enquiries Anders Gustafsson, Chief Executive Spirent plc +44 (0)1293 767676Eric Hutchinson, Finance Director Reg Hoare Smithfield +44 (0)20 7360 4900Katie 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 deliveringinnovative systems and services to meet the needs of customers worldwide. We area global provider of performance analysis and service assurance solutions thatenable the development and deployment of next-generation networking technologiessuch as broadband services, Internet telephony, 3G wireless and web applicationsand security testing. The Network Products business is a developer andmanufacturer of innovative solutions for fastening, identification, protectionand connectivity in electrical and communications networks marketed under theglobal brand HellermannTyton. The Systems group develops power control systemsfor specialist electrical vehicles in the mobility and industrial markets.Further information about Spirent plc can be found at www.spirent.com Spirent Ordinary shares are traded on the London Stock Exchange (ticker: SPT)and on the New York Stock Exchange (ticker: SPM; CUSIP number: 84856M209) in theform of American Depositary Shares (ADS), represented by American DepositaryReceipts, with one ADS representing four Ordinary shares. Spirent and the Spirent logo are trademarks or registered trademarks of Spirentplc. All other trademarks or registered trademarks mentioned herein are held bytheir respective companies. All rights reserved. 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Such factors include, but are not limited to: the extent to whichcustomers continue to invest in next-generation technology and deploy advancedIP-based services; our ability to successfully expand our customer base; ourability to continue to benefit from generally improving market conditions; theprevailing market conditions and pace of economic recovery; our ability toimprove efficiency, achieve the benefits of our cost reduction goals and adaptto economic changes and other changes in demand or market conditions; ourability to develop and commercialise new products and services, extend ourexisting capabilities in IP services and expand our product offeringinternationally; our ability to attract and retain qualified personnel; theeffects of competition on our business; fluctuations in exchange rates and heavyexposure to a weak US dollar; changes in the business, financial condition orprospects of one or more of our major customers; risks of doing businessinternationally; the financial burden of our pension fund deficit; risksrelating to the acquisition or sale of businesses and our subsequent ability tointegrate businesses; our reliance on proprietary technology; our exposure toliabilities for product defects; our reliance on third party manufacturers andsuppliers; and other risks described from time to time in Spirent plc'sSecurities and Exchange Commission periodic reports and filings. 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