Friday, March 12, 2010

EXFO Acquires Finland's NetHawk for Wireless Test

EXFO has acquired NetHawk Oyj, a leading supplier of 2G, 3G and 4G/LTE protocol analyzers and simulators for wireless network equipment manufacturers (NEMs) and network operators. The all-cash deal was valued at EUR 37.3 million for all outstanding shares on a fully diluted basis, or EUR 27.6 million excluding NetHawk's net cash. An additional earn-out, based on sales over the next three years, could raise the total value of the transaction by EUR 8.7 million.

NetHawk's key products consist of protocol analyzers for protocol development, network deployment, optimization and performance measurement as well as network simulators for load generation, regression and functional testing. Solutions cover 2G, 3G and 4G/LTE. It is estimated that NetHawk holds the No. 2 position for both protocol analysis and network simulation in terms of global market share.

NetHawk has also developed a 2G, 3G and 4G/LTE service assurance solution, based on iPro's 1G and 10G wireline stream capture and M5's deep protocol and KPI analysis, to focus on testing the core and radio access networks of a wireless telecommunications infrastructure. EXFO said this offering is highly complementary to its own BrixCall, BrixNGN and BrixVision suite of service assurance solutions for active and passive monitoring of the application layer on next-generation IP networks.

NetHawk posted revenue of €28.5 million and EBITDA of €4.2 million for the fiscal year ended December 31, 2009.
The company is headquartered in Oulu, Finland.

"This acquisition represents a defining milestone in EXFO's near 25-year history, since it not only transforms us into a global force in wireless testing, but it also moves us among the top five suppliers in the telecom test and service assurance industry with more than 1,600 employees in 25 countries supporting in excess of 2,000 customers," said Germain Lamonde, EXFO's Chairman, President and CEO.