MILPITAS, CA--(Marketwire - Aug 14, 2012) - JDSU (NASDAQ: JDSU) (TSX: JDU) today announced that it has entered into a definitive agreement to acquire GenComm, a provider of wireless test and measurement solutions based in Seoul, South Korea.
GenComm's solutions are currently distributed by JDSU under an OEM relationship and are used by tier one service providers, wireless network manufacturers and contractors around the world to quickly provision wireless services that help them create new revenue streams and improve wireless service for millions of users worldwide. Revenue from GenComm products was more than $7.5 million of JDSU's Communications Test and Measurement business segment revenue in fiscal year 2012.
In addition to acquiring its portfolio of portable test and measurement solutions for the troubleshooting, installation and maintenance of wireless base stations and repeaters, the company also brings a talented engineering team to JDSU.
"The GenComm acquisition will be a great strategic fit for JDSU, allowing us to leverage strong engineering wireless expertise and technology that will help us innovate new ways to support 2G, 3G and emerging 4G networks," said David Heard, president of JDSU's Communications Test and Measurement business segment. "Adding the expertise of GenComm's team in South Korea also expands JDSU's presence in the fast-growing Asia-Pacific region."
The addressable market for test and measurement solutions served by GenComm products, including those currently distributed by JDSU, is an estimated $175 million. According to some industry analysts, the number of connected devices accessing networks could grow to 50 billion by 2020.
"GenComm's mission has been to provide both engineering excellence and highly efficient operations to support our customers' needs," said H.S. Sohn, president of GenComm. "We look forward to creating new opportunities for our customers and employees by being part of a world-class company with the most complete wireless test portfolio in the industry."
JDSU (NASDAQ: JDSU) (TSX: JDU) innovates and collaborates with customers to build and operate the highest-performing and highest-value networks in the world. Our diverse technology portfolio also fights counterfeiting and enables high-powered commercial lasers for a range of applications. Learn more about JDSU at www.jdsu.com and follow us on JDSU Perspectives, Twitter, Facebook and YouTube.
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements include statements or implications regarding: (i) the ability to expand JDSU's presence in certain markets and (ii) estimates of market growth. These forward-looking statements involve risks and uncertainties that, if realized, could cause actual results to differ materially from those projected. These risks and uncertainties include, among other things: (a) the failure of either party to meet certain closing conditions could delay or prevent the completion of the transaction, (b) our visibility as to future market growth and customer demand is limited; (c) we may not be able to retain key GenComm employees after the transaction closes; (d) we may have difficulty integrating the GenComm business into our Communications Test and Measurement business segment which could result in interruption of the business operations; (e) anticipated synergies in product innovation and development and services may not materialize; and (f) factors discussed from time to time in reports filed by JDSU with the Securities and Exchange Commission. The forward-looking statements contained in this press release are made as of the date hereof, and the Company does not assume any obligation to update or qualify any of the statements made herein.