GN Nettest Buys Fiber Optic Test Business from IFR

In a move to increase its share of the fiber optic test market, the Fiber Optic Division of GN Nettest (Utica, NY) has signed an agreement to acquire the optical test and measurement division of IFR Systems Inc. (Wichita, KS) for $43 million in cash. The acquisition consists of PK Technology (Beaverton, OR), which specializes in fiber optic test equipment, and York Sensors (Romsey, UK), which produces distributed temperature sensing products. The two holdings will be folded in with the existing GN Nettest fiber optic division to form the GN Nettest Optical Division, under the leadership of acting president Erik Nielsen.

There are currently no plans to consolidate operations or change management at the two IFR holdings. "The companies operate in such different areas," says Maureen Hanson of GN Nettest. "They're much more lab-oriented than we are; [GN Nettest] is much more into outside plant testing." Indeed, the acquisition seems to be a very good fit. "Their engineers are focused on different kinds of technology than we are," notes Hanson. "We can take some of their technology and do a leapfrog."

Interestingly, the acquisition brings the players full circle. Ten to fifteen years ago, says Hanson, PK Photon Kinetics and GN Nettest (then called Laser Precision) were rivals in the fiber optic test industry. "We were the two key players, and here we are, back together again."

IFR is divesting itself of the businesses as a move to improve its balance sheets, while simultaneously narrowing its focus to target the wireless communications market. "By significantly reducing the company's debt, this transaction will allow IFR to focus on longer-term growth opportunities in the electronic test and measurement market, primarily in the expanding wireless communications segment," says president and CEO Iain Robertson said.

The deal is conditional upon US antitrust authorities' approval of the acquisition, expected by mid-July 1999.