TMCnet News
Sonus Networks acquires Network Equipment TechnologiesAug 30, 2012 (Datamonitor Financial Deals Tracker via COMTEX) -- Sonus Networks, Inc., a manufacturer of voice and data communication equipment, has acquired Network Equipment Technologies, Inc. (NET), a provider of enterprise-class networking solutions optimized for secure real-time communications in Unified Communications (UC), SIP trunking and cloud-based deployments. Both the companies are based in the US. Announcement (June 19, 2012): Sonus has entered into a definitive agreement to acquire NET for approximately $42 million in cash. Under the terms of the agreement, Sonus has agreed to pay purchase of $1.35 per share of NET, which represents a premium of 14.4% to NET's closing share price on June 18, 2012. Evercore Partners, Inc. and Wilmer Cutler Pickering Hale and Dorr LLP are acting financial and legal advisors to Sonus, respectively. GCA Savvian Advisors, LLC and JMP Securities are acting as financial advisors to NET and Jones Day is serving as NET's legal advisor. As a result of the acquisition, Sonus expects incremental revenue of approximately $15 million to $20 million in the second half of fiscal 2012. The acquisition is expected to close in the third quarter of 2012. Deal Value (US$ Million) 42 Deal Type Acquisition Sub-Category Majority Acquisition Deal Status Completed: 2012-08-27 Deal Participants Target (Company) Network Equipment Technologies, Inc. Acquirer (Company) Sonus Networks, Inc. Deal Rationale The acquisition is consistent with Sonus' strategy to extend its capabilities into the enterprise market and is intended to accelerate the company's ability to deliver an end-to-end portfolio of solutions that enable real-time communications. Bid Premium ($ per share) 14.4 |