NetScout already sells deep-packet analysis and data mining products to several large wireless service providers. Network General’s product line will expand NetScout’s reach in performance monitoring and troubleshooting capabilities, according to NetScout.
NetScout said the deal, which is slated to close by early November, would double its revenue in its first fiscal year. It also expects significant cost savings that would boost earnings per share and operating margins.
No job cuts are expected and the combined company would keep NetScout’s headquarters in Westford, Massachusetts.
Separately, NetScout also raised its sales outlook for its current quarter, ending September 30, to between $29m and $30m, up from its previous range of between $28m and $29m. The company also raised its earnings per share target to between 9 cents and 10 cents from 8 cents to 9 cents.
NetScout shares rose more than 4% to close at $9.50 on the Nasdaq yesterday.
