EXFO Electro-Optical Engineering has signed an agreement to acquire all shares of Brix Networks (News - Alert), a global provider of open and extensible converged service assurance solutions.

 

Chelmsford, Massachusetts-based Brix brings a proven heritage of IP expertise unique to the service assurance marketplace, and collaborates closely with its customers and partners to assure the delivery of any IP-based service, over any network, to any endpoint.

 

“The automated, real-time service assurance solutions provided by Brix Networks are increasingly becoming mission-critical for network service providers (NSPs), given the non-deterministic nature of IP networking and because the growing number of consumers adopting IP services is too widespread for NSPs to rely on expensive truck rolls to handle such tests,” said Germain Lamonde, EXFO’s Chairman, President, and CEO.

 

The acquisition is the next phase in EXFO’s growth strategy, which it expects will help it expand its market share by leveraging Brix Networks’ technological expertise, global customer base, and market presence.

 

Combined with the recently acquired Navtel (News - Alert) Communications, the new business, to be called EXFO Service Assurance, will present a major presence in the testing and monitoring arena, including lifecycle management for NSPs.

 

“We believe that network monitoring is the next logical step in our strategic plan, given the 64% CAGR in the last two years of our protocol test business, which focuses on next-generation IP networking,” added Lamonde.

 

EXFO, which provides portable test and measurement solutions, plans to retain Brix Networks’ management and technology teams, totaling about 85 employees, while some administrative and operational activities will be consolidated.

 

EXFO’s Telecom Division, which represents about 85% of the company’s business, offers a full suite of test solutions and monitoring systems to network service providers, cable TV operators, telecom system vendors and component manufacturers in approximately 70 countries.

 

“Given our unique value proposition in the IP service assurance industry and EXFO’s leadership on the test and measurement side with NSPs, the combined entity should be a significant player in the test, measurement and service assurance industry,” predicted said Tom Pincince, President and CEO of Brix Networks.

 

The acquisition has been approved by the board of directors of both companies, but is subject to customary closing conditions. EXFO will pay $28.5 million in cash and an additional earn-out based upon the achievement of bookings levels exceeding $16 million in the 12 months following the closing date.