Spirent acquires QuadTex Systems, provider of IMS and VOIP test tools, for $7.5M

February 13, 2006

2 Min Read

LONDON -- Spirent plc (LSE: SPT; NYSE: SPM), a leading communications technology company, today announces that it has acquired QuadTex Systems, Inc (“QuadTex”), a fast growing US based provider of innovative and leading test tools for internet protocol multimedia subsystem (“IMS”) and voice over 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 key employees.

In addition to being an excellent strategic fit with Spirent’s existing businesses, QuadTex will enhance and be a key contributor to its solutions for triple play, VoIP and IMS testing. IMS, which is being driven by fixed mobile convergence (“FMC”), requires comprehensive and flexible protocol testing tools. Unlike existing tools, QuadTex provides highly flexible and easy to use protocol test systems allowing users to test the functionality and interoperability of IMS systems. The need for testing new protocols or modified versions of existing protocols for FMC and IMS deployment is a market that Spirent has identified as a key area of focus.

The acquisition is in line with Spirent’s stated strategy to make selective acquisitions as it focuses on its communications activities following the recently proposed disposal of HellermannTyton. Synergies are expected to be generated through cross-selling, the integration of products to provide compelling solutions, and through the further broadening and deepening of customer relationships.

QuadTex, which has grown rapidly since being founded in 2002, is based in Dallas, 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 2005 totalled US$2.0 million with rapid growth expected in 2006. The business was cash positive and also traded profitably in 2005. Customers include Cisco, Ericsson, NTT and AT&T with revenues earned principally in the USA, with a contribution from both Asia and Europe. The founders are expected to continue to manage the business which will be incorporated within Spirent’s Performance Analysis division.

Anders Gustafsson, Chief Executive, commented:

“Spirent’s transformation continues with the acquisition of QuadTex now following the recent acquisition of SwissQual and the announcement of the proposed disposal of HellermannTyton.

“The acquisition is in line with our strategy to expand our communications business, drive profitable growth and deliver shareholder value.”

Spirent Communications plc

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