Wednesday, December 5, 2012

Emulex to Acquire Endace, Providing Entry to Network Visibility

Emulex announced an offer to acquire Endace, a supplier of  network visibility infrastructure, for approximately $130 million in cash.

Endace, which is based in New Zealand, supplies Intelligent Network Recorders which capture, index and record 100-percent of network traffic while scaling from 1 Gbps to 100 Gbps.  Endace's proprietary web-based application enables engineers to visualize, search and retrieve network traffic from any Endace Recorder anywhere across the network.  In addition to network probes, Endace also offers a 40/100 LAN/WAN network visibility fabric.

Emulex supplies Fibre Channel Host Bus Adapters, 10Gb Ethernet Network Interface Cards, Ethernet-based Converged Network Adapters, controllers, embedded bridges and switches, and connectivity management software for servers. Emulex is headquartered in Costa Mesa, California.

Emulex said the combination of its software-defined convergence architecture and Endace’s network visibility infrastructure will provide organizations with new and innovative ways to solve the challenges of network complexity and ensure application-level performance at speeds of 10Gbps and above.

"This acquisition provides Emulex with a strategic entry point into the network performance management space at a disruptive point in time, as speeds move to 10Gb, making network visibility from end-to-end a critical requirement in a converged network environment,” said Jim McCluney, chief executive officer (CEO), Emulex. "Acquiring Endace aligns with our software-defined convergence strategy, doubles our total addressable market and places Emulex in another high-margin, high-growth market. Excluding transaction related expenses, we expect the acquisition to be neutral to our non-GAAP earnings per share for fiscal 2013 and accretive at the beginning of fiscal 2014."

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