Acquisition Resources

Comtest Wireless has acquired Argogroup’s GSM-R testing business for an undisclosed sum.

GSM-R (standing for GSM-Railway) is a wireless communications standard specifically developed for railway communication. It is part of the European Rail Traffic Management System (ERTMS), an EU-backed initiative to enhance cross-border interoperability and signaling procurement by creating a single Europe-wide standard for railway signaling. 

Comtest is already an established leader in the provision of GSM-R testing solutions and, as part of the deal, will take full management and support responsibility for Argogroup’s six GSM-R customers. Under the terms of the deal, Argogroup will provide software development and engineering support to Comtest on a paid-for basis when the latter deploys Argogroup-developed GSM-R software and hardware.

According to David Frodsham, Argogroup’s CEO, the company decided to divest its GSM-R business to concentrate more closely on serving its core market - mobile telecommunications operators around the world.

“Over the last few years, we have been very successful in providing active test solutions for mobile operators,” he said. “The needs of customers in this core market are very different from those of national railway authorities and we judged it to be important to refine our customer focus and ensure success in a market where we glean most of our revenues today.”

He added that while the GSM-R business was not strategic for Argogroup, it was essential that the company found a partner who would support Argogroup’s existing GSM-R customers well and fully and that Comtest was contractually committed to do that.

Mario Musso, CEO of Comtest said that the acquisition of Argogroup’s GSM-R business filled out their range of GSM-R solutions. “We are experts in the provision of portable GSM-R testing solutions and Argogroup’s expertise lies in the complementary area of fixed, lab-based testing products. We believe the combination of the two is a perfect solution for the market.”