July 10, 2006
Test and measurement vendor Spirent Communications plc today announced its third niche acquisition this year, with the focus this time on mobile data network performance. (See Spirent Buys SSE.)
Spirent is paying $10 million in cash, plus a further sum of up to $6 million if targets are met, for Scientific Software Engineering, Inc. , a long-time partner that developed Spirent's CDMA2000 and GPRS/UMTS network performance test systems, both sold under the name Landslide.
In January, Spirent acquired GSM network performance management specialist SwissQual for up to $72 million, and in February it spent $7.5 million on VOIP test vendor QuadTex. (See Spirent Buys Wireless Test Firm and Spirent Buys VOIP Test Firm.)
Spirent has been selling the Landslide systems, which simulate data traffic generated by millions of users on CDMA2000, GPRS (2.5G), and UMTS (3G) networks, to wireless carriers and network equipment vendors since late 2003, and it has even licensed the CDMA2000 technology to Chinese vendor ZTE Corp. (Shenzhen: 000063; Hong Kong: 0763). (See China Mobile Picks Spirent and ZTE Previews Supercomm Stuff.)
Spirent says the move bolsters its IMS (IP Multimedia Subsystem) and fixed/mobile convergence test capabilities, and that sales of the Landslide products "grew strongly in the first half of the year," though no further financial details were released.
Spirent's CFO Eric Hutchinson says the acquisition is all about owning Scientific Software's intellectual property. This, he says, will enable Spirent to develop the technology to suit its needs and integrate the software into its TestCenter platform. (See Spirent Updates Test Center.)
Hutchinson wouldn't divulge any revenue details, though, saying only that Spirent had sold Scientific Software's technology to a number of major vendors and carriers such as Cisco Systems Inc. (Nasdaq: CSCO), Siemens Communications Group , Sprint Corp. (NYSE: S), Cingular Wireless , Verizon Wireless , and Telecom Italia Mobile SpA (Milan: TIM).
Dallas, Texas-based Scientific Software has 24 staff members and provides bespoke software development, integration, planning, and support services to carriers in addition to the Landslide products.
Scientific Software will be integrated into Spirent's Performance Analysis division, which is in the process of cutting its headcount as part of a companywide restructuring. (See Spirent Cuts More Jobs.)
Spirent's stock is up 1.25 pence, 3.5 percent, to 37 pence today on the London Stock Exchange .
— Ray Le Maistre, International News Editor, Light Reading
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