The Teradyne Broadband Test Division will add a significant European presence of customers for which Teradyne currently provides traditional POTS and DSL testing solutions. Tollgrade Communications, Inc. announced that it has reached a definitive agreement to acquire the assets of the Broadband Test Division of Teradyne, Inc.

Tollgrade will acquire substantially all the assets of this business for $12 million in cash, plus the assumption of specified liabilities, subject to adjustment for certain items. Completion of the acquisition is subject to customary closing conditions, and is expected to occur in the third quarter of 2007. Tollgrade preliminarily expects that the acquisition will be accretive to GAAP earnings per share in fiscal year 2007, and could add up to $10 million to 2007 revenues.

"In February 2006, we acquired the test system business unit of Emerson Network Power, Energy Systems, North America Inc., growing our telephony embedded base by approximately 25%. This acquisition will further expand that embedded base bringing our total worldwide metallic access lines under test to 350 million, which significantly expands our global market share of total metallic access lines under test," said Mark B. Peterson, Tollgrade's President and Chief Executive Officer.

"Consistent with the strategy to protect our network assurance leadership while leveraging our expanded global market share, this acquisition adds volume and capability to our already strong broadband service assurance business. We look forward to serving some of the largest and most advanced service providers in Europe and discussing with them how Tollgrade's newest technologies, when integrated into their existing test infrastructures, can help them roll-out triple-play networks and services more quickly and efficiently," added Peterson.

Tollgrade designs, engineers, markets and supports centralized test systems, test access and status monitoring products, and next generation network assurance technologies for the broadband marketplace. Tollgrade's customers range from the top RBOCs and Cable providers, to numerous independent telecom, cable and broadband providers around the world. Tollgrade's network testing, measurement and monitoring solutions support the infrastructure of cable and telecom companies offering current and emerging triple play services.

Tollgrade expects to integrate these product lines and the key people who support them into its operations at its home base near Pittsburgh, in addition to maintaining international field offices required to service customers.