Expanding test activity in 400G/800G lab and manufacturing markets

QUEBEC CITY, CANADA, September 9, 2020 — EXFO Inc. (NASDAQ: EXFO, TSX: EXF) announced today the acquisition of InOpticals Inc., a technology leader offering ultra-high-speed test instruments for the laboratory and manufacturing markets, subject to closing conditions by regulatory authorities.

InOpticals, based in Taiwan, supplies sampling oscilloscopes, bit-error rate testers (BERTs) and other critical test instruments to manufacturers of optical transponders, components and network equipment. Its product portfolio specifically addresses 400G/800G high-growth sectors like silicon photonics-based transceivers, active and passive components as well as integrated test systems for R&D and manufacturing use cases.

InOpticals’ solutions will be combined with EXFO's advanced optical test offering, bolstered by the Yenista Optics acquisition in October 2017. This latest acquisition, which is expected to close by the end of October, will increase EXFO’s global test and measurement (T&M) addressable market by approximately US$150 million to more than US$1 billion. The amount of the transaction, mostly valued in EXFO shares, was not disclosed.

"EXFO has intensified its focus on the research, development and manufacturing market as demonstrated by strong growth in this segment in recent years,” said Germain Lamonde, EXFO's founder and Executive Chairman. “InOpticals brings to EXFO a remarkable product portfolio that is highly complementary and strategic. This synergistic acquisition will allow EXFO to leverage InOpticals’ innovative test solutions across global sales channels and expand market share."

“We’re excited to be joining EXFO, truly a global leader in optical testing,” said Jones Huang, CEO of InOpticals. “Combining EXFO’s global reach and market knowledge with our proven innovation capability will allow us to jointly have a more significant impact in this high-growth market.”