NetScout Systems has entered into a definitive agreement to acquire the Communications business of Danaher Corporation, comprising Tektronix Communications, Arbor Networks, and certain parts of Fluke Networks.
Under the terms of the transaction, Danaher shareholders will receive approximately 62.5 million shares of NetScout common stock, which values the transaction at $2.6 billion based on NetScout’s closing price of $41.91 on October 10, 2014.
The transaction will increase NetScout’s scale and broaden its customer base in both the service provider and enterprise markets, while accelerating NetScout’s entry into the Cyber Intelligence market.
On a non-GAAP basis, the combined company is expected to have revenue exceeding $1.2 billion and the transaction is expected be accretive in the first year of combined operation.
The transaction is expected to close in the first half of NetScout’s fiscal year 2016.
"This combination represents another important step, and a major milestone, towards accelerating our ability to compete on a larger and more global scale in the broader IT management and Cyber Intelligence space, to fully implement our NetScout 3.0 strategy, and to maximize our potential in our total addressable market," stated Anil Singhal, co-founder, President and CEO of NetScout.
“NetScout’s high-performance monitoring technology combined with our premier troubleshooting, cyber security and engineering solutions will create the most comprehensive suite of best-in-class solutions in the industry today,” said James A. Lico, Danaher’s EVP. “The combined company will offer even greater breadth and depth across both carrier and enterprise networks, expanding opportunities for innovation and growth while improving our customers’ overall experience with comprehensive software-based solutions.”
Upon completion of the transaction, Lico will join NetScout’s Board of Directors, increasing the total number of directors to eight. NetScout will continue to be led by Singhal as president, CEO and chairman, along with the rest of his executive team.
Singhal concluded, “This business combination will expand NetScout’s global reach and help broaden our presence with customers in both the service provider and enterprise markets. In addition, it will jump-start our planned entry into the Cyber Intelligence market, particularly within the advanced persistent threat area. I am extremely excited about our potential to continue creating even more value for our customers, shareholders and employees. I also look forward to having Jim Lico, an experienced executive with tremendous insight into Danaher’s Communications business, join our Board.”
This transaction will bring together two long-respected leaders in the network and applications performance management and security sectors to create a premier provider of mission-critical solutions that can help customers drive compelling ROI on their IT investments, and mitigate the considerable business and operational risks associated with network and application downtime, service degradation, compliance lapses and security issues.
Danaher’s Communications business generated revenue (unaudited) of approximately $836 million for the year ended December 31, 2013. Danaher’s Communications business, which has over 2,000 employees worldwide, includes:
· Tektronix Communications, based in Plano, Texas, which provides a comprehensive set of assurance, intelligence and test solutions and services support for a range of architectures and applications such as LTE, HSPA, 3G, IMS, mobile broadband, VoIP, video and triple play. Also included are VSS Monitoring and Newfield Wireless.
· Arbor Networks, based in Burlington, Massachusetts, which provides solutions that help secure the world’s largest enterprise and service provider networks from DDoS attacks and advanced threats.
· Fluke Networks, based in Everett, Washington, which delivers network monitoring solutions that speed the deployment and improve the performance of networks and applications. The data cabling tools business and carrier service provider (CSP) tools business within Fluke Networks are not included this transaction.
NetScout, with over 1,000 employees, has a proven track record of successful acquisition integration, highlighted by the retention of key talent, strong collaboration across various technical areas, numerous technical accolades and notable success in driving customer adoption of new and enhanced products that resulted from these acquisitions.
The Latest
A new study by the IBM Institute for Business Value reveals that enterprises are expected to significantly scale AI-enabled workflows, many driven by agentic AI, relying on them for improved decision making and automation. The AI Projects to Profits study revealed that respondents expect AI-enabled workflows to grow from 3% today to 25% by the end of 2025. With 70% of surveyed executives indicating that agentic AI is important to their organization's future, the research suggests that many organizations are actively encouraging experimentation ...
Respondents predict that agentic AI will play an increasingly prominent role in their interactions with technology vendors over the coming years and are positive about the benefits it will bring, according to The Race to an Agentic Future: How Agentic AI Will Transform Customer Experience, a report from Cisco ...
A new wave of tariffs, some exceeding 100%, is sending shockwaves across the technology industry. Enterprises are grappling with sudden, dramatic cost increases that threaten to disrupt carefully planned budgets, sourcing strategies, and deployment plans. For CIOs and CTOs, this isn't just an economic setback; it's a wake-up call. The era of predictable cloud pricing and stable global supply chains is over ...
As artificial intelligence (AI) adoption gains momentum, network readiness is emerging as a critical success factor. AI workloads generate unpredictable bursts of traffic, demanding high-speed connectivity that is low latency and lossless. AI adoption will require upgrades and optimizations in data center networks and wide-area networks (WANs). This is prompting enterprise IT teams to rethink, re-architect, and upgrade their data center and WANs to support AI-driven operations ...
Artificial intelligence (AI) is core to observability practices, with some 41% of respondents reporting AI adoption as a core driver of observability, according to the State of Observability for Financial Services and Insurance report from New Relic ...
Application performance monitoring (APM) is a game of catching up — building dashboards, setting thresholds, tuning alerts, and manually correlating metrics to root causes. In the early days, this straightforward model worked as applications were simpler, stacks more predictable, and telemetry was manageable. Today, the landscape has shifted, and more assertive tools are needed ...
Cloud adoption has accelerated, but backup strategies haven't always kept pace. Many organizations continue to rely on backup strategies that were either lifted directly from on-prem environments or use cloud-native tools in limited, DR-focused ways ... Eon uncovered a handful of critical gaps regarding how organizations approach cloud backup. To capture these prevailing winds, we gathered insights from 150+ IT and cloud leaders at the recent Google Cloud Next conference, which we've compiled into the 2025 State of Cloud Data Backup ...
Private clouds are no longer playing catch-up, and public clouds are no longer the default as organizations recalibrate their cloud strategies, according to the Private Cloud Outlook 2025 report from Broadcom. More than half (53%) of survey respondents say private cloud is their top priority for deploying new workloads over the next three years, while 69% are considering workload repatriation from public to private cloud, with one-third having already done so ...
As organizations chase productivity gains from generative AI, teams are overwhelmingly focused on improving delivery speed (45%) over enhancing software quality (13%), according to the Quality Transformation Report from Tricentis ...
Back in March of this year ... MongoDB's stock price took a serious tumble ... In my opinion, it reflects a deeper structural issue in enterprise software economics altogether — vendor lock-in ...