Ixia is beefing up its security testing capabilities by signing a deal to acquire BreakingPoint Systems. Under the terms of the agreement, Ixia will pay $160 million in cash for BreakingPoint, subject to adjustment based on the security company's net working capital and cash at closing.
After meeting customary closing conditions and approvals, Ixia said the deal should close in Q3 2012.
So what does BreakingPoint bring to the table?
Given the ongoing threats made on corporate and consumer Internet traffic, Ixia will gain the vendor's network processor-based simulation and testing platform creates global application and live attack traffic at Internet-scale. In addition, it gains BreakingPoint's set of enterprise, service provider and government agency customers.
To date, BreakingPoint has been a profitable company. In calendar year 2011, the company reported it grew revenue 40 percent to $33.5 million while gross margin of 87 percent for the year.
Looking towards the rest of 2012, Ixia forecasts BreakingPoint's revenue to grow by over 40 percent, and "anticipates that the BreakingPoint transaction will be accretive to non-GAAP earnings in the first full quarter of operations after the acquisition closes."
Expanding its portfolio with specific elements via acquisitions has been an ongoing theme for Ixia recently. In addition to BreakingPoint, the vendor completed its acquisition of Network Visibility solutions provider Anue systems earlier this month.
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