JDSU has entered into a definitive agreement to acquire the Network Tools business of Finisar. Network Tools, which earned revenue of $44.2m in fiscal 2009, is a provider of storage area network (SAN) protocol test tools, software and services.
Under the terms of the agreement, JDSU will acquire the Network Tools business for about $40.6m in cash. The parties expect to close the transaction before the end of July 2009.
The acquisition, that is expected to contribute positive operating income in the second quarter of fiscal year 2010, includes the following strategic agenda: expanded JDSU lab test market presence, product innovation and new growth opportunities.
Dave Holly, president of communications test and measurement business segment of JDSU, said: The Network Tools business is an excellent strategic fit with JDSU. The acquisition will immediately establish JDSU as the leading provider of storage network test solutions and create new opportunities to deliver innovation and enhanced services to our lab and manufacturing customers from our combined test expertise.
The Network Tools portfolio, focused on the SAN analysis and data generation and load testing segments, reportedly specialises in an array of storage protocols, such as Fibre Channel, Gigabit Ethernet, 10GigE, iSCSI, SAS and SATA.
Its products and services, used in the development and field deployment of storage networks, include: the Xgig, a storage test platform; the Bus Doctor, a multi-analysis test platform for consumer electronics design and interoperability testing; and Medusa Labs, which provides SAN protocol analysis and test training and services.
The Network Tools business, currently headquartered in Sunnyvale, CA, includes more than 100 employees worldwide.
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Upon close of the transaction, Network Tools is expected to form the Storage Network Test unit in the Instrument Business Division of JDSU’s Communications Test and Measurement business segment.
