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Viavi Boosts Virtualized Portfolio With Expandium Buyout

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In a concerted effort to augment its virtualized solution portfolio, Viavi Solutions Inc. (VIAV - Free Report) recently inked an agreement to acquire network monitoring solutions provider Expandium for an undisclosed amount. The buyout will enable Viavi to better serve the virtualization requirements of Tier-1 service providers across the globe.

Based in Saint-Herblain, France, Expandium is a leading provider of core network monitoring and assurance solutions to public and private railway operators. Since its inception in 2005, it has carved a niche market in railway network and signaling monitoring solutions leveraging Big Data technologies.   
 
The acquisition will enable Viavi to help carriers move away from proprietary hardware to software-defined services running on off-the-shelf servers, making it more dynamic and evolving according to the changing demand patterns. This, in turn, will help address the coronavirus-induced social-distancing norms by gradually replacing hardware-based solutions with containerized virtual machines.

In addition, Viavi will gain cloud-native and 5G-ready mobile core assurance technologies of Expandium, which are likely to add value to its virtualized solution offerings. Moreover, the utilization of machine learning, stream processing and pattern detection techniques within a platform is expected to offer key analytical insights to Viavi for troubleshooting, fraud detection and network monitoring.    

Viavi boasts a comprehensive product portfolio that offers end-to-end network visibility and analytics that help build, test, certify, maintain and optimize complex physical and virtual networks. The company’s wireless and fiber test solutions are in the early stages of a multi-year investment cycle fueled by the transition of OEMs and service providers to super-fast 5G networks. The healthy growth traction is further demonstrated by the upside in wireless & fiber tests, 3D sensing products, optical transport, Ethernet, broadband access, video test and storage network testing markets.

The 5G transition is expected to be disruptive in nature, potentially creating new avenues for industries across the board. The 5G technology is also likely to augment the scalability, security and universal mobility of the telecommunications industry, which is expected to propel the wide proliferation of IoT. The telecom firms are facilitating its customers to move away from an economy-of-scale network operating model to demand-driven operations and seamlessly migrate to 5G by offering easy programmability and flexible automation. The convergence of network technologies requires significant investments from both traditional carriers (telecom and cable) and cloud service providers. With the acquisition, Viavi’s solutions are well positioned to cater to these rapidly changing industry trends, given its technology prowess, product depth and wide customer base.

The stock has declined 1.4% over the past year against the industry’s rise of 4%.



We remain impressed with the inherent growth potential of this Zacks Rank #3 (Hold) stock. Some better-ranked stocks in the industry are Acacia Communications, Inc. , Vocera Communications, Inc. and Turtle Beach Corporation (HEAR - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank(Strong Buy)stocks here.

Acacia has a long-term earnings growth expectation of 30%. It delivered an earnings surprise of 17%, on average, in the trailing four quarters.

Vocera has a long-term earnings growth expectation of 18%. It delivered an earnings surprise of 70%, on average, in the trailing four quarters.

Turtle Beach delivered an earnings surprise of 41%, on average, in the trailing four quarters.

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