LONDON--(Spirent Communications plc (LSE: SPT) (“Spirent”), a leading communications technology company, announces today that it has entered into a definitive agreement to acquire Metrico Wireless, Inc. (“Metrico”), privately held by Dimitrios Topaltzas and others, for a cash consideration of $52.0 million. Based in Frederick, Maryland, Metrico is a leading provider of services and tools that enable carriers, device vendors and technology providers to analyse the performance and subscriber quality of experience (“QoE”) of mobile devices in the field.)--
“Innovation and competition in the wireless industry is driving aggressive release cycles of sophisticated devices and services”
“Innovation and competition in the wireless industry is driving aggressive release cycles of sophisticated devices and services,” said Bill Burns, CEO of Spirent. “As carriers and device vendors strive to minimise time to market, improve subscriber quality of experience and reduce device return rates, they must also contend with disruptive technologies including 4G data, VoIP and the cloud. In line with our strategy of investing in growing and emerging technology markets, Spirent is responding to these needs by bringing together our device performance test strength in the lab with Metrico’s field-based, subscriber-level focus. The result is an unparalleled end-to-end test portfolio, allowing our customers to increase subscriber satisfaction and loyalty while reducing time to market, as well as their operational costs.”
Metrico’s cloud-based Testing as a Service (“TaaS”) solutions deliver end-to-end testing under real-world conditions on live networks with comprehensive reporting and analysis, measuring QoE of devices and services with respect to voice, data, video, battery, location and application performance. These solutions can be delivered anywhere and managed centrally, through the use of cloud-based test infrastructure located in 25 countries around the world. In addition to its service offerings, Metrico supplies innovative Measurement Systems to carriers and device manufacturers. The company’s customer base includes the top seven wireless operators in the United States, several leading mobile operators in Europe and every major device manufacturer globally.
Metrico’s Fit4Launch program ensures that wireless devices fully meet service provider performance requirements prior to commercial launch. More than 800 different devices have been certified Fit4Launch, across all operating systems and cellular technologies, ensuring that next-generation technologies and services such as LTE and VoLTE, HD voice and video, and location-based applications are well received by subscribers.
Metrico’s unique Insights service delivers independent analysis and benchmarking of device and service performance, enabling service provider marketing departments to establish advertising claims and enhance their brands, or providing input to device manufacturers’ engineering groups that are looking to enhance their products.
“Metrico has established a position as a trusted partner to the industry, and we are excited by the opportunity to leverage Spirent’s complementary expertise, scale and global reach to address more needs for a broader set of customers,” said Dimitrios Topaltzas, CEO of Metrico Wireless. “The combination of our service and product solutions for the lab and field results in a unique offering that enables operators and manufacturers to optimize end-to-end QoE more efficiently than ever before.”
Spirent is committed to supporting and enhancing Metrico’s existing portfolio of products and services and meaningful additional revenue will be achieved from Spirent’s global reach. Further benefits will be realised through the combination of Metrico’s solutions with Spirent’s lab-based mobile device performance test solutions to provide a common set of methodologies, tools and diagnostics across lab and field testing.
Spirent expects to consolidate $6.0 to $7.0 million in revenue post-acquisition in 2012, with a positive return on sales. For the first full year post-acquisition in 2013, revenues are expected to be in the range of $26.0 to $28.0 million, operating at Spirent’s average return on sales. The acquisition is expected to be earnings enhancing whilst achieving an attractive return on investment, in line with Spirent’s objectives.
The transaction is subject to customary closing conditions and is expected to complete on or about 11 September 2012.
About Spirent Communications plc
Spirent Communications plc is a global leader in test and measurement inspiring innovation within development labs, communication networks and IT organisations. We enable today’s communication ecosystem as well as tomorrow’s emerging enterprises to deploy life enriching communications networks, devices, services and applications. The Systems group develops sophisticated power control systems for electrical vehicles in the medical mobility and industrial markets. Further information about Spirent Communications plc can be found at www.spirent.com.
Spirent Communications plc Ordinary Shares are traded on the London Stock Exchange (ticker: SPT). The Company operates a Level 1 American Depositary Receipt (“ADR”) programme with each ADR representing four Spirent Communications plc Ordinary Shares. The ADRs trade in the US over-the-counter (“OTC”) market under the symbol SPMYY and the CUSIP number is 84856M209. Spirent ADRs are quoted on the Pink OTC Markets electronic quotation service which can be found at www.pinksheets.com.
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