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February 2, 2018
Viavi Solutions has announced plans to acquire Cobham’s test and measurement assets for $455 million, to augment its network services offering.
Cobham has not had an easy ride in recent months, promising to divest assets as a means to reduce debt, and it would appear Viavi is more than willing to help. Bringing Cobham’s test and measurement business would expand Viavi’s footprint into military, public safety and avionics test markets while also strengthening its position in the 5G wireless deployment market.
It could prove to be a useful acquisition for Viavi as Cobham is recognised as a leader when it comes to testing CSP networks from the radio access network through to the network core. The unit generated more than $200 million across 2017. The deal is expected to close in the second half of 2018.
“This combination is another step in our NSE strategy of driving operational scale and monetizing our NOL assets,” said Oleg Khaykin, CEO of Viavi.
“Cobham AvComm and Wireless T&M are recognized leaders with a world-class team that has a long track record of successfully bringing innovative solutions to market. Together, we expect new opportunities to grow through channel expansion and technology sharing as we address rapidly emerging opportunities in 5G, software-defined and virtualized test.”
The acquisition itself could offer some good news for investors who have had to swallow a year-on-year decline of 2.3% in Viavi’s latest earnings call. Revenues for the quarter stood at $201.8 million with net loss of $3.7 million, though the team did beat guidance forecasts. Over the next three months, the team expect revenues in the range of $190 million to $210 million.
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