By Simon Duddy
Optical cabling vendor JDS Uniphase has bought network testing equipment player Acterna for US$760 million. The deal comprises US$450 million in cash and US$310 million in JDS Uniphase’s common stock, subject to adjustments.
Optical cabling vendor JDS Uniphase has bought network testing equipment player Acterna for US$760 million. The deal comprises US$450 million in cash and US$310 million in JDS Uniphase’s common stock, subject to adjustments. The acquisition is subject to customary closing conditions and regulatory approvals, and is expected to close in the quarter ending September 30, 2005.
JDS says the acquisition makes it the leading provider of optical communications sub-systems and broadband test and measurement (T&M) systems. With combined annual revenues of over US$1 billion, its portfolio of products and services will cover the deployment of Internet Protocol (IP)-based data, voice and video services over optical long haul, metro, fibre-to-the-home, DSL and cable networks.
With sales and distribution in more than 160 countries, JDS Uniphase will serve an expanded customer base that includes the largest 100 telecommunications and cable services providers, and system manufacturers worldwide.
“Broadband and optical solutions are foundational to the growth of IP-based residential and business services,” says Kevin Kennedy, president and CEO of JDS Uniphase. “We believe that vendors with a broad portfolio of vertically integrated broadband and optical solutions are best equipped to succeed in this market. With the addition of Acterna, we believe our combined portfolio and global sales channel will improve our ability to serve our customers as they deploy next generation IP services,” he adds.
Industry research firm Prime Data says the industry addressed by Acterna represents a US$2.6 billion market and expects it to grow at a 5-10% compounded annual growth rate (CAGR) over the next five years. JDS Uniphase expects the size of its communications addressable market to double to over US$5 billion.