Ixia is continuing with its acquisition spree with a $190 million cash deal to acquire application and visibility solution vendor Net Optics.
After meeting customary closing conditions, the two companies expect the purchase to close in Q4 2013. The board of directors for both Ixia and Net Optics both approved the terms of the agreement.
Net Optics has been a profitable company, recording $49 million in revenues in 2012. During the first nine months of 2013, the vendor's revenue grew 21 percent year-over-year, reaching $42 million, with Q3 revenue growth of 31 percent year-over-year to reach $15.5 million.
Ixia said in a release announcing the acquisition that it expects the acquisition to be accretive to non-GAAP earnings by the second full quarter after the acquisition closes.
Errol Ginsberg, Ixia chairman and acting CEO, said that the acquisition of Net Optics not only enhances its product with a larger set of "network packet brokers, comprehensive physical and virtual taps and application aware capabilities," but also "strengthens our service provider customer base, increases our footprint in the enterprise, and broadens our sales channel and partner programs."
Ixia also gets to tap into another established customer base. Net Optics currently serves a mix of 8,000 enterprises, service providers and government organizations.
This acquisition comes at a pivotal time in Ixia's history. Last week, Vic Alston resigned as Ixia's president and CEO and as member of its board of directors after the company's audit committee determined that he misstated part of his academic credentials, age and early employment history.
- see the release
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