EXFO strikes $8.25M deal to acquire Absolute Analysis

EXFO FTB-1 Pro test platform. Image: EXFO

EXFO Inc., a provider of test automation and real-time 3D analytics solutions, has struck a deal to acquire a majority of assets of Absolute Analysis, the companies announced Monday.

The $8.25 million deal will allow EXFO to make use of Absolute Analysis’ RF test technology, according to the press release announcing the deal. That solution enabled Mobile Network Operators to better identify RF interference issues in fiber to the antenna, distributed antenna systems, remote radio heads, baseband units supporting 4g/LTE or 5g, and IoT connections.

"Mobile network operators are transforming their architectures and deploying fiber deeper into radio access networks to add new services and much-needed capacity, while preparing for 5G mobility and IoT," said Germain Lamonde, EXFO chairman, president and CEO, in the press release.

EXFO has made consistent efforts to reduce operating expenses for MNOs through its targeted use of fiber and Ethernet test technologies. The company said adding Absolute Analysis’ RF analysis would “significantly accelerate service delivery and troubleshooting.”

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"This small, synergistic and strategic acquisition allows EXFO to strengthen its leadership position with a unique, all-in-one optical, Ethernet and RF test solution to help MNOs greatly enhance their productivity and network reliability,” Lamonde added.

EXFO has already integrated some of Absolute Analysis’ technology. Its recent FTB-1 Pro test platform used the technology to locate RF interference issues in fiber-based mobile networks. This week’s acquisition will enable the company to “integrate the team's engineering talent and expertise to develop additional solutions.”

The deal will include $5 million in cash and the remaining amount in EXFO shares. The company said it didn’t expect the acquisition to have any material impact on its fiscal quarter ending November 30, 2016.