Oct, 2001 : Tollgrade to Acquire Lucent's' LoopCare Software Assets
📅 - Tollgrade Communications, Inc. (tollgrade.com) has announcedthat it has agreed to acquire the software assets of the MLT/LoopCare testsystem business from Lucent Technologies (lucent.com) for approximately $60 million in cash.
LoopCare, also known as Mechanized Loop Testing, is the Plain Old TelephoneServices (POTS) test system used universally by the Regional Bell OperatingCompanies. Tollgrade intends to combine the LoopCare software withTollgrade's DigiTest hardware to create a complete solution for testingtoday's POTS services.
The LoopCare-DigiTest combination also provides an economical path tosupport the emerging needs of the digital consumer. Lucent and Tollgradehave also entered into a supply agreement provide LoopCare solutions for theDigital Subscriber Line and AnyMedia market.
"This acquisition establishes Tollgrade in the preeminent position amongPOTS test system companies," said Tollgrade chairman and CEO Chris Allison."We're growing up from a niche player to an integrated, full-serviceprovider."
Tollgrade and Lucent have worked together since 1998 under a multi-yearproduct development, license, and authorized reseller agreement related toLoopCare and DigiTest. Because the DigiTest hardware is currentlyinteroperable with the LoopCare software, Tollgrade's complete POTS and DSLtest system is immediately available for deployment.
Added Allison, "Tollgrade can now offer a much stronger value proposition toTollgrade and LoopCare customers when it comes to hardware and softwaretesting products. We want to provide not only world-class POTS and consumer-oriented DSL testing capabilities, but evolve LoopCare/MLT so that we canaddress new challenges, such as digital voice testing. Merging Tollgrade'sreputation for strong customer service and value-driven pricing with theinnovation and testing expertise of our new staff of former Bell Labsdevelopers creates a very compelling system offering."
There are currently about 32 employees working in Lucent's LoopCarebusiness. Tollgrade intends to move the group to a facility near the currentLiberty Corner, NJ, location by the end of 2001.
Finally, Allison stated, "This is proving to be a solid third quarter forTollgrade for at least two reasons. First, in a tough environment, we expectour revenue to approximate $16 million, and earnings will be approximately$.15, both of which are within the range that we said in our second quarterearnings release. And, second, we're buying a product line that makes us afull consumer testing provider when combined with our DigiTest products."
LoopCare, also known as Mechanized Loop Testing, is the Plain Old TelephoneServices (POTS) test system used universally by the Regional Bell OperatingCompanies. Tollgrade intends to combine the LoopCare software withTollgrade's DigiTest hardware to create a complete solution for testingtoday's POTS services.
The LoopCare-DigiTest combination also provides an economical path tosupport the emerging needs of the digital consumer. Lucent and Tollgradehave also entered into a supply agreement provide LoopCare solutions for theDigital Subscriber Line and AnyMedia market.
"This acquisition establishes Tollgrade in the preeminent position amongPOTS test system companies," said Tollgrade chairman and CEO Chris Allison."We're growing up from a niche player to an integrated, full-serviceprovider."
Tollgrade and Lucent have worked together since 1998 under a multi-yearproduct development, license, and authorized reseller agreement related toLoopCare and DigiTest. Because the DigiTest hardware is currentlyinteroperable with the LoopCare software, Tollgrade's complete POTS and DSLtest system is immediately available for deployment.
Added Allison, "Tollgrade can now offer a much stronger value proposition toTollgrade and LoopCare customers when it comes to hardware and softwaretesting products. We want to provide not only world-class POTS and consumer-oriented DSL testing capabilities, but evolve LoopCare/MLT so that we canaddress new challenges, such as digital voice testing. Merging Tollgrade'sreputation for strong customer service and value-driven pricing with theinnovation and testing expertise of our new staff of former Bell Labsdevelopers creates a very compelling system offering."
There are currently about 32 employees working in Lucent's LoopCarebusiness. Tollgrade intends to move the group to a facility near the currentLiberty Corner, NJ, location by the end of 2001.
Finally, Allison stated, "This is proving to be a solid third quarter forTollgrade for at least two reasons. First, in a tough environment, we expectour revenue to approximate $16 million, and earnings will be approximately$.15, both of which are within the range that we said in our second quarterearnings release. And, second, we're buying a product line that makes us afull consumer testing provider when combined with our DigiTest products."
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