Spirent PLC announces Acquisition24 January 2006
SPIRENT PLC: ACQUISITION OF SWISSQUAL
London, UK - 23 January 2006: Spirent plc (LSE: SPT; NYSE: SPM), a leading communications technology company, today announces that it has entered into an agreement to acquire SwissQual Holding AG ("SwissQual"), a leading Swiss based provider of innovative test and measurement solutions for wireless telecoms markets.
Highlights: - Agreement to acquire SwissQual for an initial consideration of CHF62.5 million (GBP27.7 million), payable in cash on completion with up to a further CHF 28.0 million (GBP12.4 million) payable depending on revenue growth and various technical and financial milestones. - SwissQual brings to Spirent world class products and talent in the development of voice and video solutions that analyse, measure and improve the quality of experience for users of wireless applications and services. - SwissQual will enhance Spirent's wireless market presence principally by: - bringing it into a new and growing market - "Subscriber Experience Management" for wireless networks; - enabling Spirent's entry into the video intensive handset applications testing market through access to new technology; and - broadening its geographic coverage and expanding its customer base. - SwissQual will be incorporated within the Performance Analysis division and its experienced management team will continue to manage the business. - The acquisition is expected to be earnings enhancing in Spirent's current financial year ended 31 December 2006. - The acquisition will be financed from Spirent's cash resources and bank facilities. - SwissQual is a profitable and fast growing business, reporting EBITA of CHF 5.5 million on revenues of CHF 32.1 million in its financial year ended 31 December 2005, up 38 per cent compared to 2004.
Anders Gustafsson, Chief Executive, commented:
"Spirent's transformation continues with the acquisition of SwissQual now following the recent announcement of the proposed disposal of HellermannTyton.
"The acquisition is in line with our strategy to expand our wireless communications business, drive profitable growth and deliver shareholder value.
"SwissQual will broaden our wireless footprint and accelerate our entry into a new and growing market. It is expected to be earnings enhancing in 2006 and should provide good organic growth opportunities and deliver synergies with our existing portfolio of businesses."
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
A conference call for analysts will take place at 9.30am today, 23 January 2006. Participants should call 0845 245 3471 (or +44 (0)1452 542 300 for international callers). A replay will be available for 7 days by calling the following number: 0845 245 5205, PIN 4054323 # (+44 (0)1452 55 00 00 for international callers)
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
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 the form of American Depositary Shares (ADS), represented by American Depositary Receipts, with one ADS representing four Ordinary shares.
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Acquisition of SwissQual
Spirent plc today announces that it has entered into an agreement to acquire SwissQual, a leading provider of innovative test and measurement solutions for wireless telecoms markets, for a total consideration of up to CHF 90.5 million (GBP40.1 million), on a cash and debt free basis.
SwissQual, a Swiss based company, was founded in 2000, and provides world class products and talent in the development of voice and video solutions that analyse, measure and improve the quality of experience for users of wireless applications and services. SwissQual also has a presence in Italy and Singapore and employs around 80 staff in total.
SwissQual's broad portfolio of products can be used for:
- Benchmarking service quality on an operator's and their competitors'
networks.
- Delivering detailed information that enables operators to
troubleshoot and improve wireless service performance.
- Evaluating the service performance of fixed and wireless network
equipment in Lab and R&D settings.
In the year ended 31 December 2005, SwissQual reported sales of CHF 32.1 million (GBP14.2m) with EBITA of CHF 5.5 million (GBP2.4 m), up from CHF 23.3 million (GBP10.3m) and CHF 4.8 million (GBP2.1m) in 2004, respectively. Gross assets cash free were CHF 19.5 million (GBP8.6 m). In the current financial year ended 31 December 2005, SwissQual made strong progress in growing both sales and operating profits, and at the same time significantly increasing research and development and sales and marketing expenditure with a robust return on sales.
The acquisition of SwissQual is expected to increase Spirent's wireless market position by bringing exposure to a new market area (Subscriber Experience Management, which measures the quality of the subscriber's experience and service received from a user perspective rather than a network perspective) together with access to technology that enables Spirent's entry into the video intensive handset applications test market. In addition, SwissQual has a high quality European customer base of wireless network operators and brings with it a number of organic growth opportunities.
The following synergies exist with Spirent's existing communications activities:
- Geographic: further expansion of Spirent's wireless activities in
Europe and other markets.
- Sales: significant cross selling opportunities in USA and Asia and
new sales channels.
- Strategic: provides technology that will enable Spirent to expand its
wireless product portfolio to address handset application testing.
- Technology: brings World class leadership and talent in the
development of voice and video measurement algorithms.
SwissQual will be incorporated within the Performance Analysis division and its experienced management team will continue to manage the business.
The initial consideration is CHF 62.5 million (GBP 27.7 million), payable in cash on completion. A total further consideration of up to CHF 28.0 million (GBP 12.4 million) is payable during 2006 and 2007 based on achievement of certain revenue targets in 2006 and the delivery of technical milestones.
The acquisition is expected to be earnings enhancing in Spirent's current financial year ended 31 December 2006 and achieves all of Spirent's other acquisition hurdle criteria.
- 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
This information is provided by RNS
The company news service from the London Stock Exchange
SOURCE: Spirent PLC
Source: marketwire
All trademarks and copyrighted information contained herein are the property of their respective owners.
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