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June 20, 2012

Sonus to acquire Network Equipment Technologies

The acquisition accelerates Sonus’ ability to serve the enterprise market

By CBR Staff Writer

Voice and data communication equipment manufacturing company, Sonus Networks has entered into a definitive agreement to acquire Network Equipment Technologies (NET) for about $42m.

Sonus Networks will pay $1.35 per share, excluding acquisition-related costs and the acquisition is expected to close in the third quarter of 2012, subject to regulatory approval.

NET is a provider of networking applications optimised for secure real-time communications in Unified Communications (UC), SIP trunking and cloud-based deployments.

The acquisition will enable Sonus to expand its enterprise market capabilities with an increased set of distributors and VARs and offers the firm a U.S. federal government installed base.

Network Equipment Technologies president and CEODavid Wagenseller said, "Together we have the opportunity to extend the market for our enterprise-class networking products, expand our product capability, and increase our expertise to meet the evolving needs of our enterprise and federal government customers, as well as our valued resellers."

NET’s next-generation platforms for enterprises, including its Unified Exchange (UX) product line, would be complementary to the Sonus SBC 5200 and Sonus SBC 5100.

The two companies will work together to address the growing demand for SBCs that enable SIP trunking and SIP-based UC applications.

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The combination of Sonus’ SBC portfolio and NET’s network appliance portfolio is anticipated to provide enterprises with a mediation platform that extends from the core to the edge of their network.

With the acquisition, Sonus expects incremental revenue of approximately $15m to $20m in the second half of fiscal 2012, with the amount recognised dependent upon the timing of the completion of the acquisition.

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