Sonus Networks agreed to acquire Performance Technologies, a supplier of advanced, high availability network communications solutions, for $3.75 per share in cash, or approximately $30 million, net of PT’s cash and excluding acquisition-related costs.
PT brings an integrated, virtualized Diameter and SIP-based solution that enables service providers to offer new multimedia services through mobile, cloud-based, real-time communications. Its SEGway signaling products includes Diameter Signaling Controllers (DSC), which anchor the authentication, authorization and accounting messages sent across mobile networks.
Sonus said the Diameter Signaling Controller (DSC) market, which is expected to grow in coming years, is a natural extension of the Session Border Controller (SBC) market. SBCs and DSCs both serve as points of entry into core IP networks by providing security, admission control, intelligent routing and interworking capabilities. PT’s SEGway Universal Diameter Routers and SS7 Signaling Systems provide tightly integrated signaling and advanced routing that span mission-critical demands of both existing and next-generation 4G/LTE and IMS networks. Additionally, PT’s IPnexus Multi-Protocol Gateways and Servers enable a broad range of IP-interworking in data acquisition, sensor, radar and control applications for aviation, weather and other similar infrastructure networks. Providing an integrated, virtualized Diameter and SIP-based solution will enable Sonus to offer a more strategic value proposition to service providers seeking to deliver new multimedia services through mobile, Cloud-based, real-time communications.
“Today’s mobile broadband traffic nearly eclipses all Internet activity from just a decade ago, driving the necessity for intelligent and capable Diameter Signaling Controllers that will allow mobile operators to efficiently deploy 4G/LTE,” said Raymond P. Dolan, president and chief executive officer of Sonus. “The combination of Sonus and PT allows us to address this significant opportunity by bringing together unique and complementary technologies in wireless and wireline network intelligence, thereby expanding our addressable market by 50% and advancing our mobility and virtualization strategies. The transaction enhances Sonus’ best-in-class portfolio, further enabling service providers and enterprises to deliver on the promise of real-time communications.”
“Over our thirty-two year history, PT has been recognized for providing mission-critical solutions built on leading-edge technologies designed and supported by some of the best talent in our industry,” said John M. Slusser, president and chief executive officer of PT. “The agreement with Sonus provides substantial value to our stockholders as the premium represents an approximately 25% per share premium to our closing stock price as of December 12, 2013."
- PT is based in Rochester, NY.