Siemens continues to invest in IC industry with planned acquisition of Sarokal Test Systems

PLANO, Texas, Feb. 7, 2018 -- Siemens today announced it has entered into an agreement to acquire Oulu, Finland-based Sarokal Test Systems Oy, a provider of innovative test solutions for fronthaul networks that are comprised of links between the centralized radio controllers and the radio heads (or masts) at the "edge" of a cellular network. Sarokal products are used by chipset vendors, fronthaul equipment manufacturers, and telecom operators to develop, test and verify their 4G and 5G network devices from the early design stages through implementation and field-testing.

"The planned acquisition of Sarokal reinforces our ongoing commitment to EDA and the IC industry," said Tony Hemmelgarn, president and CEO of Siemens PLM Software. "Building on our acquisition of Mentor Graphics, we continue to make strategic investments which leverage Mentor's existing strengths and enable Siemens to expand its offerings to the IC industry."

Sarokal's products are used to test transmission specifications across multiple domains. Its tester product family addresses the entire development and maintenance flow for cellular and wired transmission system testing. The technology is especially designed to detect radio frequency (RF) problems. With Sarokal's foresight into the requirements of 5G testing, their testing models were created from the beginning for both the virtual (digitalization) environment as well as the physical testing environment.

"Sarokal has been on the forefront of the development of the 5G specification and its requirements for fronthaul networks since its inception. The 5G specification aims to greatly enhance performance for mobile broadband, network operation and Internet of Things (IoT) communication, and this requires new test methodologies," said Harri Valasma, CEO at Sarokal. "Becoming part of Siemens and integrating our technology into the Veloce emulation platform will give us greater visibility into early customer adoption of 5G, which can help us maintain our leadership as this segment is forecasted to grow rapidly."

"The addition of Sarokal's one-of-a-kind fronthaul testing expertise is expected to provide our Veloce emulator customers with a unique advantage," said Eric Selosse, vice president and general manager, Mentor Emulation Division, a Siemens business. "Sarokal's tester technology in conjunction with Mentor's Veloce emulation platform will enable customers to "shift left" the validation of 4G and 5G designs for accurate and timely pre- and post-silicon testing."

The transaction is expected to close during the first quarter of calendar 2018, subject to receipt of regulatory approvals and other customary closing conditions. The terms of the transaction were not disclosed.

Siemens PLM Software, a business unit of the Siemens Digital Factory Division, is a leading global provider of software solutions to drive the digital transformation of industry, creating new opportunities for manufacturers to realize innovation. With headquarters in Plano, Texas, and over 140,000 customers worldwide, Siemens PLM Software works with companies of all sizes to transform the way ideas come to life, the way products are realized, and the way products and assets in operation are used and understood. For more information on Siemens PLM Software products and services, visit www.siemens.com/plm.

Siemens AG (Berlin and Munich) is a global technology powerhouse that has stood for engineering excellence, innovation, quality, reliability and internationality for 170 years. The company is active around the globe, focusing on the areas of electrification, automation and digitalization. One of the world's largest producers of energy-efficient, resource-saving technologies, Siemens is a leading supplier of efficient power generation and power transmission solutions and a pioneer in infrastructure solutions as well as automation, drive and software solutions for industry. The company is also a leading provider of medical imaging equipment – such as computed tomography and magnetic resonance imaging systems – and a leader in laboratory diagnostics as well as clinical IT. In fiscal 2017, which ended on September 30, 2017, Siemens generated revenue of €83.0 billion and net income of €6.2 billion. At the end of September 2017, the company had around 377,000 employees worldwide. Further information is available on the Internet at www.siemens.com.