An Eye on Agilent Test & Measurement

February 12, 2010

FAQ: Agilent Signs Agreement to Sell Network Solutions Business to JDSU

Filed under: FAQ — janetsmithagilent @ 4:32 pm
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Thursday, February 11, 2010

FAQ: Agilent Signs Agreement to Sell Network Solutions Business to JDSU

Q1. What is Agilent announcing today?

Agilent Technologies has signed a definitive agreement with JDSU to sell its network solutions business to JDSU.

Q2.       Why is Agilent selling this business?

Agilent is selling its network solutions business because it believes the business and its customers will be better served by a company that is focused exclusively on communications network test.

Q3.       What are the financial terms of the transaction?

Buyer is paying Agilent $165 million in cash for the network solutions business.

Q4.       When is the transaction expected to close?

Subject to customary closing conditions and regulatory approval, the sale of the business is expected to be final in the June calendar quarter 2010.

Q5.       What products is JDSU acquiring?

Network solutions products include network assurance solutions, network protocol test and drive test products.  They focus on the verification, deployment and operation of telecommunication networks.  Agilent’s Electronic Measurement Group’s ongoing communication focus is on design and verification of communication devices.

Q6.       Can you tell me about JDSU?

JDSU is one of the industry’s leading test and measurement companies for the communications infrastructure industry.

Q7.       What does this mean for network solutions employees?

JDSU has stated that they expect to offer jobs to substantially all network solutions employees.  The combination of these businesses is expected to be very complementary.  (For any additional information, please have reporter check with JDSU.)

Q9.       How many network solutions employees are affected overall?  Where are they located?

Agilent employs about 700 people in the network solutions business.  Primary locations are in Loveland and Colorado Springs, Colo.; South Queensferry, Scotland; Beijing, China; and Singapore.

Q10.     What does this mean for network solutions customers and partners?  Are they aware of this divestiture?

Customers and suppliers are being notified of this signed agreement.

Q11.     Does the network solutions business have customers in common with the rest of Agilent’s Electronic Measurement Group?

The network solutions business serves network equipment manufacturers and service providers worldwide.  There is little or no overlap in buyers and users, and customer functions, between the network solutions business and the rest of Agilent’s Electronic Measurement Group.

Q12.     Does this mean Agilent is exiting the communications and the wireless test market?

No.  Agilent’s Electronic Measurement Group continues to focus on design and verification of communication devices.  Communications device test for current and leading-edge technologies remains an integral part of our portfolio. Agilent’s Electronic Measurement Group remains a leader in high performance test and measurement for the electronic markets, including communications and general purpose instruments.

Q13.     Does Agilent have plans for additional divestitures within its Electronic Measurement Group?

Agilent does not comment or speculate on any possible future transactions. 

Q14.     Will this divestiture impact Agilent’s position in Long Term Evolution (LTE) / 4G?

No.  Communications device test for current and leading-edge technologies remains an integral part of our portfolio, and spans several quadrants of our 4-point strategy, specifically technology leadership in high-end markets and differentiation through application solutions in next-generation standards such as LTE, Long Term Evolution.

Q15. What about David Churchill and his management team.  Are they going with Buyer?

The current network solutions business management team is committed to a successful transition and integration of the business with JDSU.  Their individual roles with the business will be determined during the integration planning period and will be announced after close.

Q16.  Does this divestiture signal that Agilent’s Electronic Measurement Group may be sold off?

No.  The Electronic Measurement Group is an integral part of the Agilent portfolio, and it has a solid business strategy


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