Spirent Communications announced that it has entered into an agreement to acquire SwissQual, a test and measurement company for wireless network operators. The company made the acquisition for a consideration totaling up to $70.5 M USD (including performance incentives) on a cash and debt-free basis.
The acquisition of SwissQual will enhance Spirent's presence in the wireless test and measurement market by bringing exposure to a new segment, subscriber experience management. Subscriber experience management measures the quality of the wireless subscriber's experience and service received from a user's, rather than a network, perspective. This "user-focused" perspective also favorably positions Spirent for growing its business in testing mobile video applications as well as wireless services and handsets.
"The acquisition of SwissQual is in line with our strategy to expand our wireless communications business, drive profitable growth and deliver shareholder value," said Anders Gustafsson, chief executive officer of Spirent Communications. "Acquiring SwissQual's operations, technology and strong European customer base will broaden our wireless footprint, enhance our competitive edge and accelerate our entry into new growth markets."
SwissQual, a Swiss-based company with approximately 80 employees, was founded in 2000 and provides products that measure the experience of users of wireless applications and services. SwissQual also has regional offices in Italy and Singapore. SwissQual's broad range of products are ideal for delivering detailed information that enables wireless operators to troubleshoot and improve wireless service performance. The acquisition is expected to be earnings enhancing in Spirent's current financial year ended December 31, 2006.