Ascom Network Testing enhances its position in the Reporting & Analysis market segment
Ascom Network Testing acquires all relevant assets of Veelong Corp. based in Fanwood NJ (USA). Veelong develops discerning solutions for post-processing and analysis of mobile network testing data. This acquisition further strengthens the current position of Ascom Network Testing in the Reporting & Analysis market segment.
The Swiss company Ascom Network Testing AG acquired all relevant assets of Veelong Corp. as of 3 January 2012. The purchase price consists of a fixed part of USD 5.5 million, and a performance related variable part to be paid over the next three years, which is estimated to amount up to USD 8.5 million from today's perspective. Five key employees of Veelong, including the two founders, will join Ascom Network Testing.
This acquisition secures integration of Veelong technology into a strategic growth area for Ascom Network Testing; Reporting & Analysis. Consolidating these capabilities will reduce third-party dependencies and consequently have a positive impact on the divisional gross margin. Technical integration across the portfolio will provide tangible customer benefits such as reduced operational cost, expedite the introduction of new advanced functionality, and establish Ascom TEMS Discovery as the Reporting & Analysis platform across all solutions and thus enhance the market position of Ascom Network Testing overall.
Rikard Lundqvist, General Manager of Ascom Network Testing, says: "With the growth in mobile broadband, operators are challenged to increase capacity and manage complex networks while tightly controlling, and often reducing, operational cost.
Reporting & Analysis solutions are increasingly used to address this efficiency challenge. This acquisition culminates a more than two-year working relationship between our companies that has enabled Ascom Network Testing to establish a solid position in this field. The acquisition will allow us to address the critical needs of the operators, and gain market share in the Reporting & Analysis market segment. We have a sophisticated solution in our Ascom TEMS Discovery product line and we now anticipate extending it with enterprise level capabilities in the very near future."
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