In an all-cash transaction valued at $20.4-million, EXFO Electro-Optical Engineering Inc., Quebec QC, has signed an agreement to acquire substantially all the assets of Consultronics Ltd., Concord ON, including the shares of its subsidiaries in the UK and Hungary.

EXFO says the move strengthen its position as a one-stop shop for triple-play testing in access networks, and represents a strong opportunity to leverage sales channels and customer relationships.

"This acquisition is a highly strategic initiative to position EXFO as a genuine one-stop shop for broadband access and triple-play testing, since it greatly complements our market leadership in the FTTx market," EXFO Chairman, President and CEO Germain Lamonde says. "Consultronics' strong product offering in handheld xDSL, IPTV and VoIP testing, combined with our leadership position in portable optical testing, will provide customers with a comprehensive suite of test solutions for triple-play deployments that is unmatched in our industry."

EXFO will assume $0.6-million in net debt from Consultronics and incur approximately $1.8-million in other acquisition-related costs for a total purchase price of $22.8-million.

The deal is expected to be neutral to EXFO for remainder of fiscal 2006 and accretive in fiscal 2007. Consultronics had sales of $18.6-million and in the 12-month period ended Nov. 30, 2005.