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JDS Uniphase acquires Acterna Inc.
San Jose, California, August
3, 2005 – JDS Uniphase Corporation (NASDAQ: JDSU; and TSX:
JDU) today announced that it has completed its acquisition of
Acterna, Inc., and is moving ahead with its integration plan.
JDS Uniphase acquired privately held Acterna on a cash-free,
debt-free basis for approximately $450 million in cash and approximately
200 million shares of JDS Uniphase common stock.
San Jose, California, May 23, 2005 – JDS Uniphase Corporation
(NASDAQ: JDSU; and TSX: JDU) announced today a definitive agreement
to acquire privately held Acterna Inc., a leader in broadband
and optical test & management (T&M) solutions for service providers
and network equipment vendors worldwide.
With this acquisition
JDS Uniphase becomes the leading provider of optical communications
sub-systems and broadband T&M systems. With combined annual
revenues of over $1 billion, its portfolio of products and services
will enhance the deployment of Internet Protocol (IP)-based
data, voice and video services over optical long haul, metro,
fiber-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,” said 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.”
“Acterna
has a leading share in the communications T&M market,” said
Galen Wampler, president of Prime Data, an industry research
firm. “The industry addressed by Acterna represents a $2.6 billion
market expected to grow at a five to 10 percent compounded annual
growth rate over the next five years." Therefore, JDS Uniphase
expects the size of its communications addressable market to
double to over $5 billion.
This deal is expected to also accelerate
JDS Uniphase’s path to profitability. Acterna will be immediately
financially accretive to JDS Uniphase. Based on preliminary
results for fiscal year ended March 2005, Acterna’s revenue
exceeded $440 million, its non-GAAP gross margins exceeded 50
percent, and its non-GAAP earnings before income tax, depreciation
and amortization (EBITDA) exceeded 11 percent of revenues. Acterna,
which employs approximately 1,770 people worldwide, will become
JDS Uniphase’s Communications T&M product group, led by John
Peeler, a 25-year veteran of Acterna, the company’s president
and CEO.
"Joining JDS Uniphase creates exciting new opportunities
for Acterna, its employees, customers and other partners,” said
John Peeler, president and CEO of Acterna. "A strengthened position
with system manufacturers and access to JDS Uniphase’s leading-edge
optical technologies are among the benefits that I believe will
build on our leading position.”
“T&M products are critical in
the value chain of bringing new technology, products, and services
to market; they speed the development and ensure the standards
compliance and performance objectives of new technologies and
next-generation services," said Michael Howard, principal analyst
at Infonetics Research. “Through this synergistic acquisition
JDS Uniphase combines its optical technologies with Acterna's
T&M portfolio, placing it in a unique position to help a broader
set of customers offer next-generation products and services.”
About Acterna
Acterna is the world’s largest
provider of communications test solutions for telecommunications
and cable network operators. Acterna offers an unmatched portfolio
of award-winning instruments, systems, software and services
that help its customers reduce network costs while improving
performance and reliability. Headquartered in Germantown, Maryland,
USA – with European and Asia-Pacific operations based in Eningen,
Germany and Hong Kong – Acterna serves nearly every major communications
service provider and equipment manufacturer around the world
through a direct sales and support organization in 31 countries.
About JDS Uniphase
JDS Uniphase Corporation designs and manufactures
products for markets where its core optics technologies provide
innovative solutions for communications, commercial and consumer
applications. The Company offers components, modules and subsystems
for data communications, telecommunications and cable television,
display, security, medical/environmental instrumentation, decorative,
aerospace and defense applications.
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