InfoVista writes $45m cheque for Ascom’s Network Testing biz

InfoVista has bolstered its network analytics business through a $45 million deal to acquire Ascom’s Network Testing division, TEMS.

With 5G continuing to gain momentum worldwide, the requirements for operators to maximize the potential of their networks has become more critical in light of LTE, Small Cells, VoLTE and ultimately 5G implementation. The acquisition will add to InfoVista’s armoury in the mobile network performance analytics, indoor network design and optimization, and active service testing segments.

“TEMS is a well-established and well-respected business that already helps most of the world’s largest mobile network operators to manage and optimize the capacity and quality of their wireless networks,” said Philippe Ozanian, CEO at InfoVista. “By bringing the TEMS portfolio into InfoVista, we are creating the most scalable, powerful and flexible platform for network performance orchestration to CSPs, mobile operators and enterprises.”

The InfoVista team claim the TEMs acquisition will complement the recent acquisitions of Mentum, Aexio and Ipanema, broadening the amount of network data and intelligence that can be used to improve network, applications and user experience. Check out our sister-site Light Reading for more info.

While the Network Testing business unit does demonstrate potential considering market drivers, it would appear to be somewhat of a burden for Ascom in recent years. The Network Testing business shrank over the first half of 2016 in comparison to 2015. Year-on-year net revenues declined by 35% to just over $36 million, while the Wireless Solutions business unit in Ascom accounted for roughly $150 million.

The deal would appear to be part of Ascom’s transformation strategy, as the team aim to streamline business operations, focusing more acutely on the healthcare ICT and mobile workflow solutions. During the company’s earnings call, the team highlighted the digital evolution in the healthcare industry to stimulate growth over the coming months.

The ‘paper chasm’, i.e. a lack of digitization in certain areas of the healthcare system, is one area in which Ascom will now be focusing to build momentum in the healthcare industry. The team will now aim to ‘bridge the information gap on the last mile of mobile workflows by providing mission-critical, real time solutions for the highly mobile, ad hoc and time sensitive environments’.

“With the sale of its network testing activities to InfoVista, Ascom is pleased to have found a good industrial solution and the right owner to develop and scale this business further,” said Juhani Anttila, Chairman of Ascom. “As already announced Ascom will now align itself as a one-business company and accelerate the execution of the ‘Ascom 2020’ strategy with a clear focus on healthcare ICT and mobile workflow solutions.”