MARKHAM, ONTARIO--(Marketwired - April 12, 2017) - Enghouse Systems Limited (TSX:ENGH) announced today it has acquired Tollgrade Communications, Inc. for a purchase price of approximately $23.0 million, subject to certain price adjustments. Tollgrade's annual revenue is approximately $24.0 million.
Headquartered in Cranberry, Pennsylvania, Tollgrade is a leading provider of centralized, software based test systems for broadband telecom access providers. The company's test systems are sold to communication service providers (CSPs), enabling them to remotely assess network reliability and performance, accelerate revenue for new services, minimize onsite service calls and improve overall subscriber satisfaction.
The Tollgrade test system consists of a centralized software platform that collects and analyzes measurement data from the company's test heads and third party products deployed throughout the network. CSPs use this integrated system to run network tests. These tests are done either proactively for preventative maintenance or reactively to detect, locate and remove faults.
"The Tollgrade solution is an excellent addition to our OSS Service Assurance portfolio. It enables Enghouse to offer service providers the ability to reduce costs, increase profitability, assure network reliability and improve service quality," said Sunil Diaz, General Manager, Enghouse Networks Group. "This enables a core strategy for service providers evolving to next-generation broadband over fiber and 5G access networks. We are pleased to welcome Tollgrade's employees, customers and partners."
The acquisition also adds a number of new global tier-1 and 2 customers in the U.S. and Europe. This enables Enghouse to position an expanding portfolio of OSS, BSS and Network Valued Added Services and strengthens relationships within an existing common customer base.
"We are delighted that Tollgrade is joining forces with Enghouse Networks," said Edward H. Kennedy, CEO of Tollgrade. "Together, Enghouse and Tollgrade will bring a wider portfolio of products and solutions to the market, benefiting our combined base of CSP customers."
Enghouse Systems Limited is a leading global provider of enterprise software solutions serving a variety of vertical markets. Its strategy is to build a larger and more diverse enterprise software company through strategic acquisitions and managed growth within its business segments: Contact Center, Networks (OSS/BSS) and Transportation/Public Safety. Enghouse shares are listed on the Toronto Stock Exchange (TSX:ENGH). Further information about Enghouse may be obtained from its website at www.enghouse.com.
With over 200 million lines under test in more than 70 of the world's communication service operators, Tollgrade brings 30 years of experience redefining the global standard for reliability. As a leading provider of network assurance solutions, Tollgrade's broadband products and solutions enable communication service providers to manage their networks efficiently in an age of continually evolving technology, and ongoing pressure to reduce costs. For more information visit www.tollgrade.com.