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Viavi Buys Trilithic

Says deal will complement its test and measurement product line, help it gain share outside of North America 8/16/2017 6:53 PM Eastern

In a deal that brings more consolidation to the test and measurement sector, Viavi Solutions acquired Trilithic Inc. on August 9.

Viavi revealed the deal this week as it released fiscal Q4 results, estimating that Trilithic’s trailing 12-month revenue was in the mid-$20 million range. Viavi expects the deal to be accretive in its current fiscal year. This deal comes about five months after Telestream acquired IneoQuest, and nearly a year after Telestream snapped up U.K.-based quality control firm Vidcheck. 

“Their portfolio nicely compliments Viavi’s products and enhances our ability to gain share outside of North America,” Oleg Khaykin, Viavi’s president and CEO, said of Trilithic Tuesday on the company’s earnings call.

He said the deal fits in well with Viavi’s strategy to drive the consolation of field instruments used for test and measurement.

Khaykin likened Viavi’s existing product line as “the bells and whistles” and “highly complex instruments that are used by network [technicians],  while Trilithic tended to focus on the home market and installers.

“So we had a hole in our portfolio in addressing the contractor space,” he said. “With Trilithic,  we are closing that gap and we are now going to go and take share in Latin America, Europe, and Asia…markets where we have not played before. And that's actually a very nice growing segment.”

He also acknowledged that Trilithic holds a much stronger position in the cable network infrastructure sector, and also has a produce line for noise leakage detection, which, he added, “is becoming a major problem for a lot of cable operators as they boost the speeds and they add more services.”

Viavi, Khaykin said, plans to integrate Trilithic into its existing products to create further differentiation.

For Q4, Viavi posted GAAP net revenue of $198.1 million, down from $224.1 million a year earlier, and net income of $12.1 million, or 5 cents per share.

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