JDSU Buys Finisar's Test Biz
JDSU, which expects to complete the acquisition by the end of July, says the new addition to its Communications Test and Measurement business segment is set to "contribute positive operating income in the second quarter of fiscal year 2010" (October through December 2009).
Finisar's Network Tools Division, which specializes in network and protocol analysis tools for storage area networks, generated revenues of $44.2 million in the 12 months to the end of April 2009, nearly 15 percent higher than in Finisar's previous fiscal year.
Dave Holly, president of JDSU's test business, seems excited about the deal. "The acquisition will immediately establish JDSU as the leading provider of storage network test solutions and create new opportunities to deliver innovation and enhanced services to our lab and manufacturing customers from our combined test expertise," he stated in JDSU's news release.
Once the transaction is complete, the Sunnyvale, Calif.-based Network Tools Division will become rather a JDSU Matryoshka doll –- that is, it will be the "Storage Network Test unit in the Instrument Business Division of JDSU's Communications Test and Measurement business segment."
That's a lot of doors to open to get to those folk. And their business cards will probably have to be printed on poster board.
JDSU's Communications Test and Measurement business, which contributes nearly half of the optical component firm's sales these days, will welcome the nearly $10 million-per-quarter revenues boost the Finisar unit will bring. In JDSU's fiscal third quarter (ended March 28, 2009), the vendor's test business generated revenues of $129.2 million, down nearly 24 percent year-on-year. (See JDSU's Forecast Disappoints.)
JDSU created its test business when it acquired Acterna back in 2005. (See JDSU Buys Into Testy Market.)
Since then it has supplemented that initial foray with a number of bolt-on purchases. (See JDSU Swallows Circadiant, JDSU Buys Fiber Tester, JDSU to Acquire Innocor, JDSU, Symmetricom Snap Up Minnows, and JDSU Buys a Bit of Test.)
— Ray Le Maistre, International News Editor, Light Reading