Spirent Communications plc ("Spirent", the "Company" or the "Group")
(LSE: SPT), a leading communications technology company, announces today
that it has entered into a definitive agreement to acquire the assets of
Radvision's Technology Business Unit (TBU), the part of the Radvision
business responsible for delivering industry-leading developer
solutions, for a cash consideration of $25.0 million, funded from
existing cash resources. Based in Tel Aviv, Israel, the Radvision TBU
offers a complete development and test suite for Voice and Video over IP
communications, including Voice over LTE (VoLTE), and is currently part
of Radvision Ltd., a wholly owned subsidiary of Avaya Inc. ("Avaya").
Radvision TBU pioneered the introduction of Voice and Video over IP with
a range of embedded technologies and test solutions, combining unique
expertise in signalling, multimedia and IMS. Used by developers of
mobile chipsets, mobile devices and communications infrastructure, as
well as service providers worldwide, Radvision TBU's solutions have
helped enable the majority of today's Voice and Video over IP
deployments, such as VoLTE. Key solutions include:
"VoLTE testing is already a critical element in many of Spirent's test
solutions. Our customers' transition from circuit-switched voice
networks to all-IP networks presents huge opportunities for VoLTE and
RCS services on mobile devices," saidEric Hutchinson, CEO of Spirent.
"The addition of Radvision's Technology Business Unit will expand
Spirent's test solution portfolio to meet the needs of our customers,
from early in the development cycle right through to deployment, helping
to save many man-years in development time and cost."
"Radvision TBU has been at the leading-edge of providing developer
toolkits and test and measurement solutions that enable mobile chip and
device vendors, wireless and wireline infrastructure vendors, as well as
Service Providers deliver voice and video products to market faster and
with better quality," said Boaz Raviv, Vice President, Video
Collaboration Solutions, Avaya. "Radvision's TBU voice and video
delivery software will provide Spirent's VoLTE customers with proven
tools to rapidly add voice, video and messaging services to their
applications and devices."
Spirent plans to maintain and strengthen the Radvision TBU portfolio of
products and services and will integrate them into Spirent's test
Avaya, through Radvision Ltd., will retain and continue to operate its
video conferencing business under the Video Business Unit.
The acquisition is expected to be earnings enhancing and cash generative
in the first full year, and have a return on investment in excess of
cost of capital. For the full year ended 30 September 2013, TBU
unaudited financial information showed profit before tax of $2.7 million
and gross assets of $4.0 million. TBU will be reported as part of
Spirent's Wireless and Service Experience division.
The transaction is subject to customary closing conditions and is
expected to close within 30 to 60 days. For more information visit: www.spirent.com.
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. Further information about
Spirent Communications plc can be found at http://corporate.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 http://www.otcmarkets.com/otc-pink/home.
Spirent and the Spirent logo are trademarks or registered trademarks of
Spirent Communications plc. All other trademarks or registered
trademarks mentioned herein are held by their respective companies. All
Avaya is a global provider of business collaboration and communications
solutions, providing unified communications, contact centers, networking
and related services to companies of all sizes around the world. For
more information please visit www.avaya.com.
Cautionary statement regarding forward-looking statements
This document may contain forward-looking statements which are made
in good faith and are based on current expectations or beliefs, as well
as assumptions about future events. You can sometimes, but not
always, identify these statements by the use of a date in the future or
such words as "will", "anticipate", "estimate", "expect", "project",
"intend", "plan", "should", "may", "assume" and other similar words.
By their nature, forward-looking statements are inherently predictive
and speculative and involve risk and uncertainty because they relate to
events and depend on circumstances that will occur in the future. You
should not place undue reliance on these forward-looking statements,
which are not a guarantee of future performance and are subject to
factors that could cause our actual results to differ materially from
those expressed or implied by these statements. The Company
undertakes no obligation to update any forward-looking statements
contained in this document, whether as a result of new information,
future events or otherwise.
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