Wednesday, September 9, 2015

Jim McNiel on the New NetScout

Big advances in information technology are changing the game, says James P. McNiel, Chief Marketing Officer for NetScout. Everybody is talking about SDN, NFV and software-defined data centers.  The new NetScout combines the old NetScout Systems, Tektronix Communications, Arbor Networks, Fluke Networks and VSS -- the result is a pure-play company dedicated to network-based traffic.

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  • In July 2015, NetScout Systems completed its acquisition of Danaher Corporation’s Communications Business. The deal was valued at $2.3 billion and involved the issuance of 62.5 million shares of NetScout common stock at $36.89 per share to Danaher’s shareholders. 

  • The acquisition includes Tektronix Communications, Arbor Networks and parts of the Fluke Networks businesses, all of which were owned by Danaher Corp.  The deal was first announced in October 2014.
  • Danaher’s Communications business generated revenue (unaudited) of approximately $836 million for the year ended December 31, 2013.  Danaher’s Communications business, which has over 2,000 employees worldwide, includes: 

    Tektronix Communications
    , based in Plano, Texas, which provides a comprehensive set of assurance, intelligence and test solutions and services support for a range of architectures and applications such as LTE, HSPA, 3G, IMS, mobile broadband, VoIP, video and triple play. Also included are VSS Monitoring and Newfield Wireless.

    Arbor Networks
    , based in Burlington, Massachusetts, which provides solutions that help secure the world’s largest enterprise and service provider networks from DDoS attacks and advanced threats.
    Fluke Networks
    , based in Everett, Washington, which delivers network monitoring solutions that speed the deployment and improve the performance of networks and applications. The data cabling tools business and carrier service provider (CSP) tools business within Fluke Networks are not included this transaction.
    NetScout also announced that it has secured a new five-year, $800 million senior secured revolving credit facility that replaces its previous revolving credit facility of $250 million.
  • Danaher acquired Tektronix in 2007 for $1.1 billion.
  • Danaher acquired Arbor Networks in 2010

See also