Tuesday, October 29, 2013

Ixia to acquire Net Optics for $190 million

Ixia agreed to acquire Net Optics for $190 million in cash, in a cash-free/debt-free transaction and subject to certain adjustments based on Net Optics’ net working capital at closing.

Net Optics, which is based in Santa Clara, California, specializes in application and network visibility solutions for real-time network intelligence. Its product lines include taps and virtualized taps, bypass and in-line switches, and network packet brokers.  The company recorded revenue of $49 million in 2012. In the first nine months of 2013, Net Optics revenue grew 21% over the same period in 2012, reaching $42 million, with Q3 revenue growth of 31% year-over-year to reach a record $15.5 million. Ixia expects the acquisition to be accretive to non-GAAP earnings by the second full quarter after the acquisition closes.

Ixia said the deal enhances its position as a supplier of network packet brokers and application-aware visibility solutions.

“Next-generation cloud providers, mobility operators and enterprises demand more visibility into their global networks in order to maintain quality of service across virtualization, application and service delivery,” said Errol Ginsberg, Ixia Chairman and Acting CEO. “The acquisition of Net Optics solidifies our position as a market leader with a comprehensive product offering including network packet brokers, comprehensive physical and virtual taps and application aware capabilities. Additionally, the acquisition strengthens our service provider customer base, increases our footprint in the enterprise, and broadens our sales channel and partner programs.”

“The combined Ixia and Net Optics technology and capabilities will create a very compelling value proposition for enterprises and service providers around the world,” said Eldad Matityahu, Net Optics Founder and Chairman. “Ixia will offer visibility solutions that will address the full network, and I am very excited about the opportunities that the acquisition will create for our customers, partners and employees.”