November 1, 2002--Digital Lightwave Inc. (www.lightwave.com) has agreed to acquire the optical transmission test product line of Tektronix, Inc. (www.tektronix.com) for $10 million in cash. The product line principally comprises Tektronix's Optical Test System (OTS) products.
Under the terms of the agreement, Digital Lightwave will purchase inventory, fixed assets, and certain intangible assets, as well as assume certain liabilities, which include customer warranty and employee-related obligations. In addition, Digital Lightwave intends to offer employment opportunities to approximately 45 people currently with Tektronix at the Chelmsford, MA, facility. Subject to customary closing conditions, the transaction is expected to close in early November 2002.
Tektronix's OTS Product Family will provide an anchor product line with an existing revenue stream and worldwide customer base within Digital Lightwave's Network Equipment Test and Measurement Division, according to the acquirer.
"This agreement with Tektronix marks a significant step in our strategy to continue broadening our suite of test and measurement solutions with industry-leading products," said Jim Green, president and chief executive officer of Digital Lightwave. "We believe that the acquisition will further extend our technology leadership position through the addition of optical jitter and wander measurement technology -- which is key to further penetration of international markets -- while providing opportunities to leverage the existing OTS customer base for sales of other complementary products. Furthermore, the addition of Tektronix's highly skilled engineering talent to our research and development team will help us to expand our competitive lead through future product offerings."
"We looked for a buyer who would both recognize the value of the OTS Product Family and who would manage the product family effectively on behalf of our customers," said Rick King, vice president, optical product line, Tektronix. The sale aids the company in "strategically aligning its resources and refining its optical strategy to best meet the needs of its customers, specifically in research and development applications for the optical test market," in the words of a press release.
The OTS line includes the OTS9200, which measures optical jitter and wander, as well as the OTS9000, OTS9010, OTS9040, OTS9100 Series, and OTS9300 Series instruments.