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Teradyne Sells Test Division

Photonics.com
Jun 2007
PITTSBURGH, Pa., June 4, 2007 -- Tollgrade Communications Inc. announced today it will acquire Teradyne Inc.'s Broadband Test Div. for $12 million in cash.

Tollgrade said the deal will add to its European customers those for which Teradyne now provides traditional POTS (two-wire analog) and DSL (digital subscriber line) testing products and services. The company said it expects to integrate Teradyne product lines and "the key people who support them" into its headquarters near Pittsburgh and to maintain international field offices to service customers.

Mark B. Peterson, Tollgrade’s president and CEO, said, "This acquisition will further expand that embedded base bringing our total worldwide metallic access lines under test to 350 million, which significantly expands our global market share of total metallic access lines under test. Consistent with the strategy to protect our network assurance leadership while leveraging our expanded global market share, this acquisition adds volume and capability to our already strong broadband service assurance business."

Teradyne's broadband test systems support 160 million voice lines and 60 million DSL lines worldwide. The primary products of this business include Celerity, a central office-based automated loop-qualification test system, the 4TEL product line, which builds on the copper loop testing and analysis platform 4TEL Demand Test, a suite of tests that characterize the line from exchange to premises terminations; the LDU 50 test unit for qualification, provisioning and service assurance testing of access networks; and 4TEL support software and services.

In February 2006, Tollgrade acquired the test system business unit of Emerson Network Power, Energy Systems, North America Inc.

The new acquisition, which will include the assumption of specified liabilities, is expected to occur in the third quarter of this year and is subject to customary conditions. Tollgrade said it expects the acquisition to be accretive to GAAP earnings per share in fiscal year 2007 and that it could add up to $10 million to 2007 revenues.

For more information, visit: www.tollgrade.com


GLOSSARY
photonics
The technology of generating and harnessing light and other forms of radiant energy whose quantum unit is the photon. The science includes light emission, transmission, deflection, amplification and detection by optical components and instruments, lasers and other light sources, fiber optics, electro-optical instrumentation, related hardware and electronics, and sophisticated systems. The range of applications of photonics extends from energy generation to detection to communications and...
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