Andrew Acquires Xenicom

Andrew Corp. acquires privately held UK-based provider of software solutions for managing wireless networks

January 12, 2005

2 Min Read

ORLAND PARK, Ill. -- Andrew Corporation has acquired Xenicom Ltd., a privately-held UK-based provider of software solutions that help telecommunications operators plan, launch, and manage wireless networks.

Under terms of the acquisition, Andrew paid approximately $11.5 million cash, with additional cash consideration possible if certain financial performance goals are reached over a two-year period. Xenicom generated approximately $11 million in sales during the 12 months ending September 2004. Its customers include several major European mobile operators.

Xenicom’s solutions and products help its customers achieve greater efficiency and cost savings, improved service levels, and increased flexibility and control in managing 2G, 2.5G, and 3G wireless networks. With Xenicom’s software capabilities and products, Andrew sees significant opportunity to assist wireless operators manage and optimize infrastructure as they transition to new networks based on 3G standards.

“Combining Xenicom’s software capabilities with Andrew’s globally diversified customer base and industry-leading product portfolio creates a new market opportunity for Andrew and a compelling choice for mobile operators worldwide,” said Terry Garner, group president, Network Solutions, Andrew Corporation. “This enhances Andrew’s ability to deliver solutions that help our customers improve the capacity of their networks, reduce capital spending, and roll out new and upgraded infrastructure more quickly and efficiently.”

The acquisition, which is effective immediately, should be slightly accretive to earnings during the first 12 months. As part of the transaction, Xenicom and its 55 employees—located in offices in Bristol, U.K.; Dallas, TX; and Sao Paulo, Brazil—will join Andrew’s Network Solutions group, which had sales of $184 million in fiscal 2004. Network Solutions provides high performance, high quality radio frequency (RF) and digital measurement tools and network data management, performance evaluation, and resource optimization solutions for wireless communications systems.

Andrew Corp.

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