JDSU said wednesday it is acquiring enterprise network developer Network Instruments for $200 million in cash, a move that brings the company into the $1 billion enterprise networking, cloud and data center markets.
The product portfolios of both companies are highly complementary, JDSU said, and the acquisition "expands the addressable market for JDSU's Network and Service Enablement business segment by more than $1 billion in markets, growing at nearly 13 percent, including the application-aware network performance management and network packet broker markets," the company said.
"The acquisition of Network Instruments by JDSU will provide our customers with considerable benefits," said Douglas Smith, president, CEO and co-founder of Network Instruments. "JDSU's commitment to product innovation and its leadership position with service providers will provide Network Instruments with a strong entry into the carrier market for performance management solutions. In turn, our robust product line and strong relationships with our enterprise channel partners will benefit JDSU as we bring our products under the JDSU brand."
Network Instruments is based in Minnetonka, Minn., and has approximately 125 employees. The company had revenue of approximately $40 million for the past 12 months. The transaction is expected to be accretive to JDSU earnings on a non-GAAP basis starting in the fourth quarter of FY14, JDSU said.
The deal also is subject to regulatory approval and other adjustments and is expected to close within 45 days, JDSU said.
For more information, visit: www.jdsu.com