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EXFO Inc. (NASDAQ: EXFO, TSX: EXF) has announced the acquisition of NetHawk Oyj ("NetHawk"), the second-largest provider of 2G, 3G and 4G/LTE protocol analyzers and simulators for wireless network equipment manufacturers (NEMs) and network operators, in an all-cash transaction estimated at (euro)37.3 million for all outstanding shares on a fully diluted basis, or (euro)27.6 million excluding NetHawk's net cash.
EXFO entered into a purchase agreement to acquire 91% of NetHawk's outstanding shares and will purchase the remaining shares pursuant to a statutory procedure under the Finnish Companies Act. An additional earn-out, based on sales over the next three years, could raise the total value of the transaction by (euro)8.7 million.
NetHawk, headquartered in Oulu, Finland, brings to EXFO almost 20 years of wireless expertise and customer relationships. Key products consist of protocol analyzers for protocol development, network deployment, optimization and performance measurement as well as network simulators for load generation, regression and functional testing. Solutions cover a wide range of wireless technologies, namely 2G, 3G and 4G/LTE. It is estimated that NetHawk holds the No. 2 position for both protocol analysis and network simulation in terms of global market share, including a market-leading position in testing high-growth 4G/LTE networks.
NetHawk has also developed a 2G, 3G and 4G/LTE service assurance solution, based on iPro's 1G and 10G wireline stream capture and M5's deep protocol and KPI analysis, to focus on testing the core and radio access networks...