Tuesday, April 1, 2008

EXFO to Acquire Brix for US$28.5 million

EXFO Electro-Optical Engineering agreed to acquire Brix Networks, a provider of converged service assurance solutions, for US$28.5 million in cash and an additional earn-out based upon the achievement of bookings levels exceeding US$16 million in the 12 months following the closing date of the transaction. Total purchase price could reach US$37.5 million.

Brix Networks, a privately held company headquartered near Boston, specializes in IP service assurance technology that was developed through substantial R&D investments in the last nine years. The company's distributed, probe-based solutions proactively monitor next-generation, converged IP networks to assure that voice, video, and data services are delivered with the quality of service (QoS) and quality of experience (QoE) demanded by users. Brix Networks offers VoIP and IPTV testing.

Brix Networks posted sales of US$15.2 million, a gross margin above 70%, and a GAAP net loss of US$6.8 million in calendar 2007. EXFO plans to retain Brix Networks' management and technology teams totaling about 85 employees, while some administrative and operational activities will be consolidated.

"This strategic acquisition represents another step in EXFO's long-term growth strategy, enabling us to expand share of wallet with NSPs through Brix Networks' deep technological advantage, global customer relationships, and strong market presence in the fast-growing service assurance market. We believe that network monitoring is the next logical step in our strategic plan, given the 64% CAGR in the last two years of our protocol test business, which focuses on next-generation IP networking. The combination of Brix Networks, recently-acquired Navtel Communications, and EXFO will create a new force in the test and monitoring marketplace with full technology lifecycle coverage for NSPs," said Germain Lamonde, EXFO's Chairman, President, and CEO.http://www.brixnet.com/http://www.exfo.com

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