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Advantest acquires W2BI

06 May 2013 - Semiconductor test equipment supplier Advantest and US firm, Inc. (W2BI) have reached an agreement in principle that Advantest will acquire W2BI, a provider of system level test automation software focusing on wireless communications. Based in New Jersey, W2BI will become a fully-owned subsidiary of Advantest’s US subsidiary, Advantest America, Inc. The acquisition is scheduled for finalization in May 2013, pending the completion of all required procedures.

The acquisition comes amid a heightened emphasis on mobile device system level test, driven by the need to incorporate support for mobile connectivity standards such as LTE and GSM and multiple frequency bands, as well as the diversification of mobile operating systems (OS) and applications software. Manufacturers and carriers increasingly recognize the importance of testing smartphones and other wireless communication devices at the design / R&D stage, in realistic environments simulating actual usage. Meanwhile, the number of items that must be considered for validation continues to increase. The market for mobile device system level test equipment is therefore expected to show robust growth going forward, supported by increasing sales of wireless communications devices and the worldwide adoption of the LTE standard.

Advantest’s acquisition of W2BI aligns with the company’s strategic, proactive expansion into new markets, while maintaining as its core competence the measurement technologies it has amassed over decades at the forefront of the test and measurement industry. The move positions Advantest to further develop its presence in the mobile device system level test equipment market, and is expected to contribute to maximizing the company’s profitability in growth markets, underpinned by its global sales and support network. Going forward, the company will seek additional synergies from the fusion of W2BI’s technology with Advantest’s own solutions—both of which already enjoy widespread acclaim in the mobile device system level test market and semiconductor test market, respectively.

The acquisition is not expected to have a material impact on Advantest’s consolidated results in the current period.

About W2BI

W2BI is a provider of automated test software for handsets and other mobile communication devices and associated test service solutions. Founded in November 1997, the company has offices in South Plainfield, NJ, U.S.A and Chennai, India. Annual sales in CY2012 were approx. $7.5 million.

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