EXFO (Nasdaq:EXFO) (TSX:EXF), a provider of test and service assurance solutions for wireless and wireline network operators, said Friday it has sold its life sciences and industrial division to global private equity firm The Riverside Company for US$24.3 million in cash.
The life sciences and industrial division, based in Toronto, Canada, provides services in medical device and opto-electronics assembly, fluorescence microscopy and other life science sectors. It generated US$25.4 million in sales and US$4.3 million in earnings from operations for the fiscal year ending August 31, 2010.
The sales of the unit is intended to help EXFO focus its efforts and resources on its core telecom test and service assurance business, which is expected to benefit shareholders and customers in the long-term, said the company.
The sold division will appear as a discontinued operation in EXFO's fiscal fourth-quarter and year-end financial results, which will be released after the close of markets on October 12, 2010.
The purchase price of the division is subject to adjustments for minimum working capital requirements.
Quebec-based EXFO offers services that assess the performance and reliability of converged, IP fixed and mobile networks. Key technologies supported include 3G, 4G/LTE, IMS, Ethernet, OTN, xDSL, and various optical technologies accounting for an estimated 35% of the portable fiber-optic test market.