JDSU Buying Agilent's 4G Test Unit
MILPITAS, Calif., Feb. 11, 2010 — JDSU today announced that it will acquire the Network Solutions communications test business of Agilent, including its 4G network verification and deployment products, for $165 million in cash.
The Agilent unit being acquired has approximately 700 employees with business operations located in Colorado, the UK, Singapore and Beijing.
JDSU said the acquisition significantly expands its communications test position, including the emerging market for LTE (Long Term Evolution)/4G solutions required by wireless service providers and network equipment manufacturers.
"This acquisition establishes JDSU as a market leader in wireless test instruments and systems and enables us to provide customers with new, innovative LTE solutions as they deploy this next-generation mobile data technology," said Tom Waechter, president and CEO of JDSU.
LTE will provide much higher bandwidth to support mobile data and video applications on handsets, notebooks, portable readers and gaming devices. More than 50 wireless service providers worldwide have announced plans to deploy LTE, including AT&T, Bell Canada, China Telecom, China Mobile, T-Mobile Germany, NTT DoCoMo and Verizon Wireless. Test products are used throughout LTE development, deployment and life of the system.
The Agilent unit had annual revenue for its fiscal year ending Oct. 31, 2009, of $162 million from global sales of service assurance monitoring systems, drive test and protocol test instruments used worldwide by service providers and equipment manufacturers. 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 FY2011.
The transaction, which is subject to regulatory approvals, is expected to close in June.
For more information, visit: www.jdsu.com
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