NetScout Systems, a provider of performance analytics and operational intelligence solutions, has announced that it has entered into a definitive agreement to acquire the Communications business of Danaher Corporation, comprising Tektronix Communications, Arbor Networks, and certain parts of Fluke Networks.
The transaction is valued at $2.6 billion based on a largely share-based deal with NetScout’s closing price of $41.91 on October 10, 2014.
Danaher’s Communications business, which has over 2,000 employees worldwide, generated revenue of approximately $836 million for the year ended December 31, 2013.
NetScout believes the transaction will increase its scale and broaden its customer base in both the service provider and enterprise markets, while accelerating NetScout’s entry into the Cyber Intelligence market. The combined company is expected to have revenue exceeding $1.2 billion.
“This combination represents another important step, and a major milestone, towards accelerating our ability to compete on a larger and more global scale in the broader IT management and Cyber Intelligence space, to fully implement our NetScout 3.0 strategy, and to maximize our potential in our total addressable market,” stated Anil Singhal, co-founder, president and CEO of NetScout.
“NetScout’s high-performance monitoring technology combined with our premier troubleshooting, cyber security and engineering solutions will create the most comprehensive suite of best-in-class solutions in the industry today,” said James A. Lico, Danaher’s Executive Vice President. “The combined company will offer even greater breadth and depth across both carrier and enterprise networks, expanding opportunities for innovation and growth while improving our customers’ overall experience with comprehensive software-based solutions.”
Upon completion of the transaction, Mr. Lico will join NetScout’s Board of Directors, increasing the total number of directors to eight. NetScout will continue to be led by Mr. Singhal as president, CEO and chairman, along with the rest of his executive team.
Mr. Singhal concluded, “This business combination will expand NetScout’s global reach and help broaden our presence with customers in both the service provider and enterprise markets. In addition, it will jump-start our planned entry into the Cyber Intelligence market, particularly within the advanced persistent threat area. I am extremely excited about our potential to continue creating even more value for our customers, shareholders and employees. I also look forward to having Jim Lico, an experienced executive with tremendous insight into Danaher’s Communications business, join our Board.”
Read the full press release here.