Sonus Networks Announces Plans to Acquire Performance Technologies
Sonus Networks today announced its intention to acquire Performance Technologies for approximately $30 million. Sonus will pay $3.75 per Performance Technologies share (NASDAQ:PTIX). The deal is expected to close in the first quarter of 2014.
The acquisition price is nearly a 26 percent premium over PTIX's closing share price on December 12th.
Sonus Networks has solutions for both enterprise and the service provider markets, including Session Border Controllers (SBCs), policy routing servers, and media and signalling gateways. The addition of Performance Technologies is intended to be complementary to the existing Sonus portfolio.
Performance Technologies was founded in 1981, went public in 1996, and has established itself as an expert in both Diameter and Core Signaling. One of the vendor's primary product lines is its portfolio of Diameter Signalling Controllers (DSC). Diameter signalling is a key part of 4G and LTE networks, as well as an area of increasing demand and growth.
"Today's mobile broadband traffic nearly eclipses all Internet activity from just a decade ago, driving the necessity for intelligent and capable Diameter Signaling Controllers that will allow mobile operators to efficiently deploy 4G/LTE," said Raymond P. Dolan, president and chief executive officer of Sonus, in a statement.
Dolan expects that the combination of Sonus and Performance Technologies will expand the total addressable market open to Sonus by 50 percent, as it will advance the company's virtualization and mobile strategies.
According to Sonus, the DSC market is a logical and complementary addition to its existing SBC capabilities, as both technologies are admission control entry points into an IP network.
Performance Technologies’ SEGway Universal Diameter Routers and SS7 Signaling Systems, as well as the company's IPnexus Multi-Protocol Gateways and Servers, are all seen as attractive assets by Sonus.
"In addition to the financial benefits to our stockholders, in Sonus we find a dedicated team of kindred spirits, highly focused on driving continued growth in the next-generation network communications marketplace," John M. Slusser, president and chief executive officer of Performance Technologies, said in a statement. "Through this transaction, the value proposition of our broad Diameter and SS7 telecommunications signaling portfolio can be further leveraged and, in combination with Sonus’ industry leading SBC and SIP-based product family, it offers an exciting opportunity to provide service providers with a compelling solution set as they architect and provision their networks."
Sean Michael Kerner is a senior editor at Enterprise Networking Planet and InternetNews.com. Follow him on Twitter @TechJournalist