JDSU Acquires Network Solutions from Agilent
JDSU yesterday announced the successful completion of its acquisition of the Network Solutions Communications test business of Agilent. The acquisition includes the unit’s innovative Long Term Evolution (LTE), or 4G, network verification and deployment products. JDSU announced its intent to acquire Agilent’s Network Solutions business for $165 million in cash on February 11, 2010. The acquisition should strengthen JDSU’s Global Communications Test Leadership Position and is hoped to increase its end-to-end wireless test portfolio in lab, field & service assurance. “We welcome a great team to JDSU,” said Tom Waechter, president and chief executive officer of JDSU. “This is a strategic acquisition that strengthens JDSU’s position as the world’s leading provider of communications network test solutions, including an end-to-end wireless test portfolio to address mobile backhaul, LTE deployment and other high-growth market opportunities.” The business acquired from Agilent had annual revenue for its fiscal year ending October 31, 2009 of $162 million from global sales of service assurance monitoring systems, drive test and network protocol test instruments used by communications service providers and equipment manufacturers worldwide. The business, including approximately 700 employees in Colorado, the U.K., Singapore and Beijing, will be integrated into the existing Solutions Division of JDSU’s Communications Test and Measurement business segment. JDSU expects the acquisition to be accretive to non-GAAP earnings per share on a quarterly basis and for the full fiscal year starting in fiscal 2011. The acquisition significantly expands JDSU’s communications test position, including in the emerging LTE/4G market sector for which more than 50 wireless carriers worldwide have announced pending deployments. LTE will provide significantly increased bandwidth to support the rapid growth of mobile data and video applications on handsets, notebooks, portable readers and gaming devices. The products acquired by JDSU are designed to support the LTE network verification, deployment and operational life-cycle. New JDSU Product Lines JDSU will now offer one of the industry’s most complete set of wireless test solutions, including the following offerings from Agilent’s Network Solutions portfolio: * Service Assurance—Market leading service monitoring, troubleshooting and deployment solutions for maximum reliability, efficiency and customer satisfaction. Products include Agilent Assurance for Mobile Voice and Data, Agilent Assurance for MSS (Mobile Softswitch Voice Networks) and Agilent NgN Analysis Systems. * Protocol Analyzers and Network Diagnostics—Network protocol analyzers for lab and field testing by network equipment manufacturers and wireless service providers, supporting protocols such as 3G/UMTS R8, Femtocell and emerging 4G/LTE networking technology. Products include Signaling Analyzer Real-Time (SART) Network Analyzer 10 GigE, Distributed Network Analyzer (DNA), Triple Play Analyzer (TPA) and Voice Quality Tester (VQT). * Wireless Drive Test—Drive test network optimization platform and instruments used by service providers and NEMs that provide infrastructure equipment to measure performance and to optimize the integrity and quality of all the major established wireless networks and evolving technologies including LTE and WiMAX™. This multi-band, multi-technology receiver solution delivers advanced troubleshooting capabilities and greatly increases measurement and network deployment speeds. JDSU also announced that it will be issuing grants of compensatory restricted stock unit awards to employees hired by JDSU in connection with the acquisition. The restricted stock unit awards to be granted to those employees by JDSU are generally comparable to equity awards that JDSU generally grants to its new employees. These grants were made under the JDS Uniphase Corporation 2005 Acquisition Equity Incentive Plan, which was approved by the Board of Directors of JDSU, but not submitted for the approval of the stockholders of JDSU. These restricted stock unit awards were approved by the Compensation Committee of the JDS Uniphase Corporation Board of Directors on May 2, 2010. Pursuant to such approval, on May 15, 2010 JDSU will award restricted stock units covering a total of 743,483 shares of JDSU common stock. Awards will be granted to 544 employees. Source: JDSU PR
