ORLAND PARK, Ill. -
January 12, 2005 - Andrew Corporation (NASDAQ: ANDW) 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.”
About Xenicom
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.
About Andrew
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
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