Sonus Networks, Inc., a provider of SIP communications equipment, and Network Equipment Technologies, Inc., a provider of networking services for communications in Unified Communications (UC), SIP trunking and cloud-based deployments, on Tuesday announced they have entered into a definitive agreement for Sonus to acquire NET for $42 million. The purchase price of $1.35 per share excludes acquisition-related costs and is expected to close in the third quarter of 2012.
As a result of the acquisition, Sonus expects incremental revenue of approximately $15 million to $20 million in the second half of fiscal 2012, with the amount dependent upon the timing of the completion of the acquisition, says Sonus (Westford, Mass., USA).
According to Sonus, the acquisition of NET (Fremont, Calif., USA) will help the company extent into the enterprise market and help deliver an end-to-end portfolio for real-time communications.
NET delivers networking services for those enterprise locations where secure UC, SIP trunking and Cloud-based networking features are required. NET services enable public and private network operators to simplify their network by converging legacy PBX voice traffic onto a single converged data network.
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. 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.
A recent Infonetics Research (Campbell, Calif., USA) report shows the fast moving enterprise SBC market is expected to grow 26% year-over-year through 2016. Typical savings from SIP trunking, trunk consolidation and the move to VoIP can reduce traditional enterprise telecom bills by up to 75%, says Sonus.
NET has customers worldwide and has 13 offices globally including the U.S., U.K., France, the Middle East, China, Japan, and Australia. The company has been granted 73 U.S. patents and 17 foreign patents and has a number of additional patent applications pending.