- UK-based leader in real-time network topology discovery
and service-chain mapping for automated root-cause
analysis
- Acquisition strengthens EXFO's offering in service
assurance and 3D analytics for hybrid physical-virtual networks and
is a key step towards closed-loop automation
QUEBEC CITY, March 2, 2017 /CNW Telbec/ - EXFO Inc. (NASDAQ:
EXFO) (TSX: EXF), the global network test, data and analytics
experts, announces the company has acquired privately held Ontology
Systems, technology leader in real-time network topology discovery
and service-chain mapping, for a total consideration of
US$7.6 million, net of cash.
UK-based Ontology Systems uses graph-data and semantic searches
to build real-time views of network services and related network
elements. Network functions virtualization (NFV) and software
defined networking (SDN) technologies render communications
infrastructures highly agile to deploy new services on the fly.
This has created the need for an automated network inventory
solution fully integrated with probing agents to accelerate fault
discovery, root-cause analysis and eventually closed-loop
automation in hybrid physical-virtual environments.
The combination of Ontology Systems' expertise in mapping
complex, cross-domain, multi-layer network topologies with EXFO's
end-to-end service assurance and real-time 3D analytics solutions
will deliver a truly comprehensive view across physical, virtual
and hybrid networks.
"This strategic acquisition uniquely positions EXFO with agile,
real-time visualization and troubleshooting solutions that enable
communications service providers (CSPs) to manage their networks
more efficiently and ensure heightened quality of experience and
scalability for next-generation networks, which will be hybrid in
nature for many years to come," said Germain Lamonde, EXFO's Founder, Chairman and
CEO. "Combining EXFO's physical and virtual probes and real-time
analytics solution, with Ontology Systems' unique mapping
methodology, delivers an unmatched value proposition for monitoring
and managing next-generation networks. Based on early discussions
with CSPs, this new offering is resonating very strongly with them,
since they are striving to improve customer experience while
becoming more agile and cost-efficient."
Ontology Systems generated approximately US$4.0 million in revenue during the last 12
months, including sales to tier-1 CSPs. The acquisition is expected
to be neutral to EXFO's adjusted EBITDA in fiscal 2017 and
accretive thereafter.
"We are very pleased to become an integral part of the EXFO
team," said Benedict Enweani, Ontology Systems' CEO and Co-Founder.
"Leveraging EXFO's global sales, support channels and brand-name
recognition will greatly accelerate our plans to deliver service
agility to CSPs worldwide."
Conference Call and Webcast
EXFO will host a
conference call today at 8:00 a.m. (Eastern
time) to review the highlights of this transaction. To
listen to the conference call and participate in the question
period via telephone, dial 719-325-2385. Please take note the
following conference ID number will be required: 9541566. An audio
replay of the conference call will be available two hours after the
event until 11:00 a.m. on
March 9, 2017. The replay number is
719-457-0820 and the conference ID number is 9541566. The
audio Webcast and replay of the conference call will also be
available on EXFO's Website at www.EXFO.com, under the
Investors section.
Forward-Looking Statements
This press release contains
forward-looking statements within the meaning of the U.S. Private
Securities Litigation Reform Act of 1995, and we intend that such
forward-looking statements be subject to the safe harbors created
thereby. Forward-looking statements are statements other than
historical information or statements of current condition.
Words such as may, expect, believe, plan, anticipate, intend,
could, estimate, continue, or similar expressions or the
negative of such expressions are intended to identify
forward-looking statements. In addition, any statement that
refers to expectations, projections or other characterizations of
future events and circumstances are considered forward-looking
statements. They are not guarantees of future performance
and involve risks and uncertainties. Actual results may differ
materially from those in forward-looking statements due to various
factors including, but not limited to, macroeconomic uncertainty as
well as capital spending and network deployment levels in the
telecommunications industry (including our ability to quickly adapt
cost structures with anticipated levels of business and our ability
to manage inventory levels with market demand); future economic,
competitive, financial and market conditions; consolidation in the
global telecommunications test and service assurance industry and
increased competition among vendors; capacity to adapt our future
product offering to future technological changes; limited
visibility with regards to timing and nature of customer
orders; longer sales cycles for complex systems involving
customers' acceptances delaying revenue recognition; fluctuating
exchange rates; concentration of sales; timely release and market
acceptance of our new products and other upcoming products; our
ability to successfully expand international operations; our
ability to successfully integrate businesses that we acquire; and
the retention of key technical and management personnel.
Assumptions relating to the foregoing involve judgments and risks,
all of which are difficult or impossible to predict and many
of which are beyond our control. Other risk factors that may affect
our future performance and operations are detailed in our Annual
Report, on Form 20-F, and our other filings with the U.S.
Securities and Exchange Commission and the Canadian securities
commissions. We believe that the expectations reflected in the
forward-looking statements are reasonable based on information
currently available to us, but we cannot assure that the
expectations will prove to have been correct. Accordingly, you
should not place undue reliance on these forward-looking
statements. These statements speak only as of the date of this
document. Unless required by law or applicable regulations, we
undertake no obligation to revise or update any of them
to reflect events or circumstances that occur after the date of
this document.
About EXFO
EXFO develops smarter network test, data
and analytics solutions for the world's leading communications
service providers, network equipment manufacturers and web-scale
companies. Since 1985, we've worked side by side with our clients
in the lab, field, data center, boardroom and beyond to pioneer
essential technology and methods for each phase of the network
lifecycle. Our portfolio of test orchestration and real-time 3D
analytics solutions turn complex into simple and deliver
business-critical insights from the network, service and subscriber
dimensions. Most importantly, we help our clients flourish in a
rapidly transforming industry where "good enough" testing and data
analytics just isn't good enough anymore—it never was for us,
anyway. For more information, visit EXFO.com and follow us on the
EXFO Blog.
About Ontology Systems
Ontology Systems uses
graph-data and semantic modelling to create an end-to-end dynamic
view of the network topology and services. This swift, low-risk,
flexible approach delivers an up-to-date picture of difficult and
fragmented network, OSS and BSS data. Founded in 2006 and
headquartered in London, UK,
Ontology customers include several tier-1 and tier-2 communications
service providers.
EXFO-C
SOURCE EXFO inc.