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Spirent Agrees to Acquire Radvision’s Technology Business Unit

Spirent Communications plc (“Spirent”, the “Company” or the “Group”) (LSE: SPT), a leading communications technology company, announces today that it has entered into a definitive agreement to acquire the assets of Radvision’s Technology Business Unit (TBU), the part of the Radvision business responsible for delivering industry-leading developer solutions, for a cash consideration of $25.0 million, funded from existing cash resources. Based in Tel Aviv, Israel, the Radvision TBU offers a complete development and test suite for Voice and Video over IP communications, including Voice over LTE (VoLTE), and is currently part of Radvision Ltd., a wholly owned subsidiary of Avaya Inc. (“Avaya”).

Radvision TBU pioneered the introduction of Voice and Video over IP with a range of embedded technologies and test solutions, combining unique expertise in signalling, multimedia and IMS. Used by developers of mobile chipsets, mobile devices and communications infrastructure, as well as service providers worldwide, Radvision TBU’s solutions have helped enable the majority of today’s Voice and Video over IP deployments, such as VoLTE. Key solutions include:

  • Lab-based Test Tools - ProLab testing suite is a highly scalable and feature-rich real-time testing solution for voice and video over LTE devices and emulates a wide range of real-world network conditions. ProLab will enable Spirent to significantly strengthen its own Voice over LTE (VoLTE) test offering, ensuring the readiness of networks and devices to support a wide range of services that can provide and maintain the expected Quality of Service (QoS).
  • Protocol Stacks - The Radvision TBU’s award-winning suite of protocol stacks, including IMS and SIP, provides the communications industry with the core technology behind rich media applications and products, while it’s Developer Suites simplify and accelerate the development of all types of VoIP and 3G/LTE multimedia applications and services.
  • Video Communications Client Framework - BEEHD video client software is a complete framework that allows Service Providers, application developers and device manufacturers to launch customizable IMS-compliant VoLTE/RCS services for Android, iOS, Windows, or MAC OS-based devices.
  • Voice and Video Services Monitoring - The eVident solution allows users to proactively ensure network readiness before voice and video services are deployed, helping to ensure Quality of Service (QoS) of Enterprise-grade Voice and Video over IP services.

“VoLTE testing is already a critical element in many of Spirent’s test solutions. Our customers’ transition from circuit-switched voice networks to all-IP networks presents huge opportunities for VoLTE and RCS services on mobile devices,” said Eric Hutchinson, CEO of Spirent. “The addition of Radvision’s Technology Business Unit will expand Spirent’s test solution portfolio to meet the needs of our customers, from early in the development cycle right through to deployment, helping to save many man-years in development time and cost.”

“Radvision TBU has been at the leading-edge of providing developer toolkits and test and measurement solutions that enable mobile chip and device vendors, wireless and wireline infrastructure vendors, as well as Service Providers deliver voice and video products to market faster and with better quality,” said Boaz Raviv, Vice President, Video Collaboration Solutions, Avaya. “Radvision’s TBU voice and video delivery software will provide Spirent’s VoLTE customers with proven tools to rapidly add voice, video and messaging services to their applications and devices.”

Spirent plans to maintain and strengthen the Radvision TBU portfolio of products and services and will integrate them into Spirent’s test solutions.

Avaya, through Radvision Ltd., will retain and continue to operate its video conferencing business under the Video Business Unit.

The acquisition is expected to be earnings enhancing and cash generative in the first full year, and have a return on investment in excess of cost of capital. For the full year ended 30 September 2013, TBU unaudited financial information showed profit before tax of $2.7 million and gross assets of $4.0 million. TBU will be reported as part of Spirent’s Wireless and Service Experience division.

The transaction is subject to customary closing conditions and is expected to close within 30 to 60 days. For more information visit: www.spirent.com.

About Spirent Communications plc

Spirent Communications plc is a global leader in test and measurement inspiring innovation within development labs, communication networks and IT organisations. We enable today’s communication ecosystem as well as tomorrow’s emerging enterprises to deploy life enriching communications networks, devices, services and applications. Further information about Spirent Communications plc can be found at http://corporate.spirent.com/.

Spirent Communications plc Ordinary Shares are traded on the London Stock Exchange (ticker: SPT). The Company operates a Level 1 American Depositary Receipt (“ADR”) programme with each ADR representing four Spirent Communications plc Ordinary Shares. The ADRs trade in the US over-the-counter (“OTC”) market under the symbol SPMYY and the CUSIP number is 84856M209. Spirent ADRs are quoted on the Pink OTC Markets electronic quotation service which can be found at http://www.otcmarkets.com/otc-pink/home.

Spirent and the Spirent logo are trademarks or registered trademarks of Spirent Communications plc. All other trademarks or registered trademarks mentioned herein are held by their respective companies. All rights reserved.

About Avaya

Avaya is a global provider of business collaboration and communications solutions, providing unified communications, contact centers, networking and related services to companies of all sizes around the world. For more information please visit www.avaya.com.

Cautionary statement regarding forward-looking statements

This document may contain forward-looking statements which are made in good faith and are based on current expectations or beliefs, as well as assumptions about future events. You can sometimes, but not always, identify these statements by the use of a date in the future or such words as "will", "anticipate", "estimate", "expect", "project", "intend", "plan", "should", "may", "assume" and other similar words. By their nature, forward-looking statements are inherently predictive and speculative and involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. You should not place undue reliance on these forward-looking statements, which are not a guarantee of future performance and are subject to factors that could cause our actual results to differ materially from those expressed or implied by these statements. The Company undertakes no obligation to update any forward-looking statements contained in this document, whether as a result of new information, future events or otherwise.

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