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Johanne Torres[March 29, 2005]

Juniper to Acquire Session Border Control Company Kagoor

BY JOHANNE TORRES


In a transaction valued at $67.5 million in cash announced today, Juniper Networks, Inc. signed a definitive agreement to acquire session border control (SBC) technology provider Kagoor Networks. The move, the company said, is an additional step in its strategy to bring secure and assured networking to customers worldwide through rich traffic processing. The service combo of Juniper Networks' networking solutions and Kagoor's SBC technology will offer a solution for network operators looking to cost-effectively deploy quality VoIP services.


"Network operators worldwide are increasingly looking to deliver enhanced VoIP and other rich services to their enterprise and consumer customers, but they need to do this in a secure and assured fashion. SBC technology is a key element in delivering these attributes. With Kagoor, Juniper gains best-in-class SBC technology and an acknowledged center of excellence in voice," commented Kittu Kolluri, general manager, Security Products Group, Juniper Networks.

San Mateo, California-headquartered Kagoor has a research and development (R&D) center in Herzelia, Israel. The company’s VoiceFlow SBC products are installed in over 100 carriers worldwide, most of which also use Juniper Networks' platforms. Kagoor also adds synergies through a number of common strategic partnerships including Lucent, Siemens and NEC. Juniper says it will leverage the acquisition to establish an Israeli R&D center which will tap into the strong engineering talent pool in Israel.

"Our joint customers and partners have already recognized the value Juniper Networks and Kagoor bring in delivering best-in-class solutions to help them differentiate their service offerings," commented Jim Dolce executive vice president, Worldwide Field Operations, Juniper Networks. "This acquisition demonstrates Juniper Networks' continued commitment to helping customers enhance their businesses through the creation of IP-based infranets that deliver the quality and assurance of private networks, with the flexibility and positive economics of public networks."

The acquisition is expected to close in the second quarter of 2005 subject to certain customary closing conditions. Kagoor generated less than $5M of revenue in 2004 and both companies expect to be less than $0.01 per share dilutive to Juniper Networks in 2005 and to be accretive in 2006.

"We're very pleased to be joining the Juniper Networks team and are excited at the opportunity this represents for our combined customers and partners. Kagoor's voice expertise and comprehensive SBC functionality is a great complement to Juniper's networking and security expertise," commented Opher Kahane, co-founder and CEO, Kagoor Networks.

Kagoor Networks
www.kagoor.com

Juniper Networks, Inc.
www.juniper.net


Johanne Torres is contributing editor for TMCnet.com and Internet Telephony magazine. Previously, she was assistant editor for EContent magazine in Connecticut. She can be reached by e-mail at jtorres@tmcnet.com.

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