|[February 18, 2014]
Spirent Communications plc Signs Definitive Agreement to Acquire the Business of DAX Technologies Corp.
LONDON --(Business Wire)--
Spirent Communications (News - Alert) plc (LSE: SPT) ("Spirent"), a leading
communications technology company, announces today that it has entered
into a definitive agreement to acquire the business of DAX Technologies (News - Alert)
Corp. ("DAX"), privately held by Dragos Alexe and others, for a cash
consideration of $37.0 million, funded from existing cash resources.
Based in Matawan, New Jersey, DAX is a leading provider of Customer
Experience Management ("CEM") solution software that enables mobile and
wireline service providers to understand and quantify services as
experienced by their customers.
The DAX InTouch software is a uniquely comprehensive customer experience
and service quality management solution, able to aggregate and analyse
data from a wide eco-system of existing sources, including probes,
network equipment and end user devices, as well as from carriers'
business systems that handle processes such as trouble ticketing.
Processing billions of network and business records each day, InTouch
gives service providers real-time insights into their customers'
experience, providing actionable end-to-end analytics to operations,
support, marketing and engineering teams. DAX InTouch customers are
primarily top-tier wireless service providers in North America, together
with other service providers in EMEA.
"Our service provider customers are deploying converged networks that
need to support an ever-increasing range of rich applications and
associated data traffic. These complex networks generate massive amounts
of data, yet provide a limited understanding of the customer
experience," said Eric Hutchinson, CEO of Spirent. "The addition of DAX
positions Spirent well to help service providers with the unprecedented
challenges they face when developing and managing new services in mobile
and wireline network environments of rapidly increasing complexity. This
acquisition will enable us to strengthen our Service Assurance
portfolio, expanding Spirent's addressable market in the live network."
Converging multi-technology 3G and 4G/LTE (News - Alert) networks and services, such as
VoLTE, require the use of big data analytics to fully understand the
customer experience. The acquisition of DAX will enable Spirent to
combine measurements ad data from its solutions in the lab and in live
networks, delivering high value solutions and expertise that help its
customers deploy and manage complex new networks and services faster and
"Rapid change in the mobile eco-system brings many opportunities and
InTouch has quickly established a leading position in the fast-growing
CEM segment," said Frank Galuppo (News - Alert), CEO of DAX Technologies. "Spirent's
scale, together with the breadth and depth of its service provider
relationships, will enable the business to grow beyond its current
Spirent is committed to supporting and enhancing DAX's existing
portfolio of solutions and services and meaningful additional revenue
will be achieved from Spirent's scale and relationships with service
providers. Further benefits will be realised through combining InTouch
with Spirent's solutions in the lab and in live networks to deliver high
value added solutions.
Spirent expects that this transaction will be earnings enhancing and
cash generative in the first full year, and have a return on investment
in excess of cost of capital.
The transaction is structured as an acquisition of the business, subject
to customary closing conditions and is expected to complete within one
week of signing. For the year ended 31 December, 2012 DAX reported
profit before tax of $6.8 million and gross assets of $6.8 million.
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
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