UK-based Spirent Communications struck an agreement to acquire US market rival OctoScope to boost its Wi-Fi and 5G testing capabilities.

Spirent explained it would pay US$55 million on a debt and cash free basis, with an additional US$18 million consideration based on annual growth targets for 2021 and 2022.

The company provides test assurance and analytics solutions for next-generation devices and networks: it stated octoScope would advance a strategy of expanding in Wi-Fi and add to 5G to its testing solutions portfolio.

It believes Wi-Fi now sits alongside 5G and, with explosive growth in IoT, emergence of mission-critical use cases and expansion of applications including fixed wireless access and Wi-Fi offload, the importance of secure and reliable Wi-Fi was “greater than ever”.

OctoScope’s test solutions use patented technology to provide automated Wi-Fi and 5G testing in emulated real-world environments, including the latest Wi-Fi 6 and 6E technologies.

Its products are used by a number of communication service providers, chipset, device and Wi-Fi vendors including Google, Facebook, Verizon, Qualcomm, Nokia and Amazon.

The deal is in line with Spirent’s targeted investment and M&A plans, which it outlined at its Captial Markets Day in October 2020, when it said it would look to diversify its customer base and secure a “broader assurance opportunity”.