Spirent acquires SwissQual

When Spirent sold its network products group last month, Spirent CEO Anders Gustafsson said the $511 million gain from that deal would be used to pay off debt and buy back shares, but he also indicated the company would look for potential acquisitions in its core communications market. Today, Spirent followed through on that intention by agreeing to acquire SwissQual, a test and measurement company serving wireless network operators.

U.K.-based Spirent made the acquisition for a consideration totaling up to $70.5 million--including performance incentives--on a cash and debt-free basis, the company said in a statement.

Spirent has long been in the test and measurement business, but the deal should enhance its position in the wireless test market by exposing it to a new segment called subscriber experience management. Subscriber experience management measures the quality of the wireless subscriber's experience and service received from a user's, rather than a network, perspective, Spirent said. It’s the type of measurement capability many industry observers have indicated will be much needed as wireless applications evolve past voice to encompass video and other content.

"Acquiring SwissQual's operations, technology and strong European customer base will broaden our wireless footprint, enhance our competitive edge and accelerate our entry into new growth markets," Gustafsson added in the statement.

SwissQual, founded in 2000, is based in Zucwil, Switzerland, and has about 80 employees. The acquisition is expected to be earnings enhancing in Spirent's current financial year ending Dec. 31, 2006, the company said.