January 8, 2008 -- JDSU announced that it has acquired the fiber division of Westover Scientific Inc., a provider of fiber-optic inspection and cleaning tools. Westover Scientific's products complement JDSU's existing fiber field and lab and production test portfolio and will be integrated with JDSU's Communications Test and Measurement (CommTest) business, says the company. JDSU claims it is now the largest provider of fiber-optic test equipment in the world for service providers, labs, and manufacturers.
Westover Scientific, based near Seattle, WA, designs and manufactures specialized field and lab microscopes necessary to detect dirt and other contaminants that are considered the leading cause of costly faults in fiber-optic networks.
Per the agreement, which has been completed, JDSU acquired the fiber division of Westover Scientific for $50 million in cash, subject to terms and conditions. JDSU also intends to acquire Westover Scientific's affiliated manufacturing company in Fuzhou, China, which remains subject to certain regulatory approvals. JDSU says it expects to complete this second acquisition in the second half of the 2008 fiscal year.
Communications service providers worldwide are rolling out proactive fiber inspection programs to support the deployment of large-scale FTTx initiatives and to ensure reliable, high-quality delivery of IP-based triple play services. Service providers have identified contaminated fibers as the key cause of costly network troubleshooting and permanent equipment damage. Westover Scientific offers easy-to-use fiber inspection tools that, among other applications, allow field technicians to determine the cleanliness of fiber connection when they install the network.
Fiber inspection and cleaning are critical components in a comprehensive fiber deployment and operation strategy, contends JDSU. Westover Scientific provides a full suite of optical inspection and cleaning solutions that address the needs of fiber component and system manufacturers, communication service providers, and various other vertical markets such as premise networks, military and aerospace.
"The investment in FTTx initiatives and the importance of service quality in today's competitive environment mean telecommunications and cable service providers need dependable fiber-optic test solutions that allow them to proactively prevent fiber contamination that may cause network faults before they affect end-users," contends Bill Mortimer, vice president and general manager of JDSU's Lab, Production and Fiber Optic test businesses. "With the addition of Westover Scientific's product portfolio, JDSU has an unmatched set of fiber test solutions to support the cost-effective deployment and management of fiber networks."
JDSU currently integrates high-performance Westover Scientific products in many of its advanced test platforms, including fiber characterization devices in the
MTS/T-BERD 8000 and MTS/T-BERD 6000 product lines.
"Fiber networks are both increasingly complex and necessary due to the continued demand for high-bandwidth broadband services, and solutions are needed to help deploy the networks quickly without sacrificing performance," adds Steve Lytle, president of Westover Scientific. "Providing the market with reliable cleaning and inspection products that help meet the challenges of deploying high-performance fiber has been the differentiator for Westover Scientific products for over ten years, and we will build on this commitment as part of JDSU," he maintains.
Westover Scientific's fiber test business includes approximately 80 employees with calendar 2007 revenues of more than $15 million, representing growth of approximately 30% compared with calendar 2006. JDSU expects the transaction to be accretive on a non-GAAP EPS basis for fiscal 2008.