Published on October 31, 2016
EXFO Inc., the trusted partner to communications service providers (CSPs) for test automation and real-time 3D analytics solutions, announced today it has acquired the majority of the assets of Absolute Analysis Inc., including technology, expertise and solutions in the area of radio frequency (RF) testing for fiber-based radio access networks (RANs).
QUEBEC CITY, CANADA, October 31, 2016 — EXFO Inc. (NASDAQ: EXFO, TSX: EXF), the trusted partner to communications service providers (CSPs) for test automation and real-time 3D analytics solutions, announced today it has acquired the majority of the assets of Absolute Analysis Inc., including technology, expertise and solutions in the area of radio frequency (RF) testing for fiber-based radio access networks (RANs).
This acquisition is driven by EXFO’s commitment to provide market-leading solutions to mobile network operators (MNOs) in their quest to deploy next-generation, fiber-based fronthaul networks and RAN architectures. In a market where subscriber quality of experience is a profitability game changer, MNOs have little room for error while pressure is increasing to deploy faster and minimize operating expenses.
To address these challenges, EXFO is combining its cutting-edge optical and Ethernet test technologies with those of Absolute Analysis, a privately held company in Newbury Park, California. Absolute Analysis’ solutions are critical for identifying and analyzing RF interference issues in fiber to the antenna (FTTA), distributed antenna systems (DAS), remote radio heads (RRHs) and baseband units (BBUs) that support 4G/LTE and, soon, 5G wireless mobility and Internet of Things (IoT). Absolute Analysis’ technology delivers highly efficient CPRI (Common Public Radio Interface) protocol analysis and emulation as well as RF over CPRI spectrum analysis.
This unique combination of RF analysis over CPRI with EXFO’s market-leading fiber and Ethernet test technologies significantly accelerates service delivery and troubleshooting, which reduces operating expenses for MNOs.
EXFO has already integrated a portion of Absolute Analysis’ technology into the recently launched OpticalRFTM application for its FTB-1 Pro test platform, a compact, lightweight and powerful solution that allows MNOs to quickly and easily locate all RF interference issues in fiber-based mobile networks.
“Mobile network operators are transforming their architectures and deploying fiber deeper into radio access networks to add new services and much-needed capacity, while preparing for 5G mobility and IoT,” said Germain Lamonde, EXFO’s Chairman, President and CEO. “This small, synergistic and strategic acquisition allows EXFO to strengthen its leadership position with a unique, all-in-one optical, Ethernet and RF test solution to help MNOs greatly enhance their productivity and network reliability.”
EXFO will leverage its global sales organization to maximize Absolute Analysis’ technologies integrated into its portfolio, and EXFO will also integrate the team’s engineering talent and expertise to develop additional solutions.
This cash and stock transaction is valued at approximately US$8.25 million, including US$5 million in cash and the remaining amount in EXFO shares. No material impact from the acquisition is expected for EXFO’s first quarter of fiscal 2017 ending on November 30, 2016.
EXFO will host a conference call Tuesday at 8 a.m. (Eastern time) to review the highlights of this transaction. To listen to the conference call and participate in the question period via telephone, dial 704-288-0432. Please take note the following conference ID number will be required: 12080223. An audio replay of the conference call will be available two hours after the event until 11:59 p.m. on November 8, 2016. The replay number is 855-859-2056 and the conference ID number is 12080223. The audio Webcast and replay of the conference call will also be available on EXFO’s Website at www.EXFO.com, under the Investors section.
EXFO is the trusted partner to communications service providers (CSPs) globally with leadership in test automation and 3D analytics solutions to ensure the smooth deployment, maintenance and management of next-generation, physical, virtual, fixed and mobile networks. The company has also forged strong relationships with network equipment manufacturers (NEMs) to develop deep expertise that migrates from the lab to the field and beyond. EXFO’s key differentiation comes from combining intelligent, automated and cloud-based test and monitoring solutions with real-time analytics to deliver unmatched end-to-end visibility and assurance—from a network, services and end-user level. EXFO is no. 1 in portable optical testing and boasts the largest active service assurance deployment worldwide. For more information, visit www.EXFO.com and follow us on the EXFO Blog.
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