Comtest Buys Argogroup's GSM Biz

Comtest Wireless acquires Argogroup's GSM-R testing business for an undisclosed sum

May 2, 2007

1 Min Read

GUILDFORD, U.K. and TURIN, Italy -- Comtest Wireless has acquired Argogroup's GSM-R testing business for an undisclosed sum.

GSM-R (standing for GSM-Railway) is a wireless communications standard specifically developed for railway communication. It is part of the European Rail Traffic Management System (ERTMS), an EU-backed initiative to enhance cross-border interoperability and signaling procurement by creating a single Europe-wide standard for railway signaling. GSM-R resulted from more than a decade of collaboration between Europe's national railway companies with the aim of furnishing a cost efficient digital replacement for existing incompatible in-track cable and analogue railway radio networks.

Comtest is already an established leader in the provision of GSM-R testing solutions and, as part of the deal, will take full management and support responsibility for Argogroup's six GSM-R customers. Under the terms of the deal, Argogroup will provide software development and engineering support to Comtest on a paid-for basis when the latter deploys Argogroup-developed GSM-R software and hardware.

According to David Frodsham, Argogroup's CEO, the company decided to divest its GSM-R business to concentrate more closely on serving its core market - mobile telecommunications operators around the world.

"Over the last few years, we have been very successful in providing active test solutions for mobile operators," he said. "The needs of customers in this core market are very different from those of national railway authorities and we judged it to be important to refine our customer focus and ensure success in a market where we glean most of our revenues today."

Comtest Wireless

Argogroup

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