Monday, June 18, 2012

Sonus to Acquire N.E.T. for $42 Million

Sonus Networks agreed to acquire Network Equipment Technologies for $42 million in cash ($1.35 per share).

NET is a supplier of enterprise-class networking solutions optimized for secure real-time communications in Unified Communications (UC), SIP trunking and Cloud-based deployments. The portfolio includes its flagship Unified Exchange (UX) product line, which enables public and private network operators to simplify their network by converging legacy PBX voice traffic onto a single converged data network. NET's Unified Exchange Series qualifies as a Survivable Branch Appliance (SBA) and Enterprise Session Border Controller (E-SBC) for Microsoft Lync.

As a result of the acquisition, Sonus expects incremental revenue of approximately $15 million to $20 million in the second half of fiscal 2012, with the amount recognized dependent upon the timing of the completion of the acquisition.

Sonus said the acquisition is consistent with its strategy to extend its capabilities into the enterprise market. The combination of Sonus’ SBC portfolio and NET’s network appliance portfolio is anticipated to provide enterprises with a seamless mediation platform that extends from the core to the edge of their network. In particular, the companies together address the growing demand for SBCs that enable SIP trunking and SIP-based UC applications. Equipment Technologies (N.E.T)