Andrew Corporation has acquired Xenicom Ltd., a privately-held UK-based
provider of software solutions that help telecommunications operators
plan, launch, and manage wireless networks.
Under terms of the acquisition, Andrew paid approximately $11.5 million
cash, with additional cash consideration possible if certain financial
performance goals are reached over a two-year period. Xenicom generated
approximately $11 million in sales during the 12 months ending September
2004. Its customers include several major European mobile operators.
Xenicom's solutions and products help its customers achieve greater
efficiency and cost savings, improved service levels, and increased
flexibility and control in managing 2G, 2.5G, and 3G wireless networks.
With Xenicom's software capabilities and products, Andrew sees
significant opportunity to assist wireless operators manage and optimize
infrastructure as they transition to new networks based on 3G standards.
"Combining Xenicom's software capabilities with Andrew's globally
diversified customer base and industry-leading product portfolio creates
a new market opportunity for Andrew and a compelling choice for mobile
operators worldwide," said Terry Garner, group president, Network
Solutions, Andrew Corporation. "This enhances Andrew's ability to
deliver solutions that help our customers improve the capacity of their
networks, reduce capital spending, and roll out new and upgraded
infrastructure more quickly and efficiently."
The acquisition, which is effective immediately, should be slightly
accretive to earnings during the first 12 months. As part of the
transaction, Xenicom and its 55 employees--located in offices in
Bristol, U.K.; Dallas, TX; and Sao Paulo, Brazil--will join Andrew's
Network Solutions group, which had sales of $184 million in fiscal 2004.
Network Solutions provides high performance, high quality radio
frequency (RF) and digital measurement tools and network data
management, performance evaluation, and resource optimization solutions
for wireless communications systems.
"Xenicom has a strong position in the rapidly growing market for
performance engineering software," said Martin Coates, co-founder and
chief executive officer, Xenicom. "Our solutions have been proven to
save operators considerable amounts of money and gain greater control
over their network assets. As part of Andrew, Xenicom broadens its
global reach and capabilities in a way that is unmatched by any others."
Andrew Corporation (NASDAQ:ANDW) designs, manufactures, and delivers
innovative and essential equipment and solutions for the global
communications infrastructure market. The company serves operators and
original equipment manufacturers from facilities in 35 countries. Andrew
(www.andrew.com), headquartered in Orland
Park, IL, is an S&P 500 company founded in 1937.
Xenicom is a strategic partner and provider of software based solutions
for mobile network operators. Its products address the key business
issues facing mobile operators in the planning, rollout and management
of 2G, 2.5G and 3G networks. Its solutions deliver a significant
increase to the management capability and efficiency of customers. Its
range of business solutions includes the radio planning tool, Odyssey,
SIM and Number Management, as well as its flagship product - Omnix.
Omnix, has been specifically designed to provide today's wireless
operator with a comprehensive solution to manage all aspects of
planning, building, and operating a wireless network. Omnix is an OSS
resource and workflow management solution that has already demonstrated
efficiency saving of up to 250 percent within the engineering and
infrastructure function, offering a huge reduction in the capital
requirement for infrastructure rollout. Xenicom is a UK based
independent company backed by 3I plc, with staff in multiple locations
in Europe and the Americas.
Forward Looking Statements
Some of the statements in this news release are forward looking
statements and we caution our stockholders and others that these
statements involve certain risks and uncertainties. Factors that may
cause actual results to differ from expected results include the
company's ability to integrate acquisitions and to realize the
anticipated synergies and cost savings, the effects of competitive
products and pricing, economic and political conditions that may impact
customers' ability to fund purchases of our products and services, the
company's ability to achieve the cost savings anticipated from cost
reduction programs, fluctuations in international exchange rates, the
timing of cash payments and receipts, end use demands for wireless
communication services, the loss of one or more significant customers,
and other business factors. Investors should also review other risks and
uncertainties discussed in company documents filed with the Securities
and Exchange Commission.