Tollgrade Communications Inc., a developer of test systems for telecom and cable companies, has completed its acquisition of the wireline test system unit of Emerson Network Power, Energy Systems, North America Inc., a subsidiary of Emerson.
Emerson Network Power provides wireline testing software and hardware products for DSL and traditional POTS applications.
Tollgrade paid approximately $5.5 million in cash and expects the acquisition to initially be dilutive to GAAP earnings per share, but accretive by the end of fiscal year 2006. The transaction also could add to 2006 revenue by up to $8 million.
The acquisition of Emerson Network Power’s test system unit increases Tollgrade’s embedded base of telco access lines by approximately 25 percent, mostly in the international market.