Ixia to acquire Net Optics, Inc.

Ixia has entered into a definitive agreement to acquire Net Optics, Inc. (Net Optics), a leading provider of total application and network visibility solutions. Under the terms of the agreement, Ixia will pay $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. The transaction is anticipated to close in the fourth quarter of 2013, and is subject to customary closing conditions and approvals.

Thursday, 31st October 2013 Posted 11 years ago in by Phil Alsop

Net Optics 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.

“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.”

Enterprise and service provider customers require an always-on user experience with a network that is designed for speed, scalability, agility and security as well as the ability to provide visibility into virtualized environments. With the combination of Ixia and Net Optics solutions, enterprises and service providers can look to Ixia as a single vendor that can meet all of these pressing needs.

“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.”

With the acquisition, Ixia will be able to leverage Net Optics’ industry-leading active monitoring capabilities with their patented inline and bypass technologies, which go beyond passive network monitoring to deliver high availability of security and monitoring tools.