Combination Adds Advanced Analytics for Automating the Process of Detecting and Diagnosing Application Performance Issues across Converged Networks
WESTFORD, Mass., April 14 /PRNewswire-FirstCall/ -- NetScout Systems, Inc.
(Nasdaq: NTCT), a leading provider of enterprise-wide network and application
performance management products and solutions, today announced that it has
completed the acquisition of the business and assets of privately held
Quantiva Inc., a provider of automated analytics solutions for application
performance management. Under the terms of the agreement, the purchase price
totaled approximately $9.3 million and was paid in cash.
The acquisition of Quantiva will extend NetScout's leading market position
with unique technology that automates the process of detecting and diagnosing
application performance problems before they impact critical business
services. "Recent events of consolidation in our industry have validated how
important network-centric infrastructure performance management is in the
marketplace today. NetScout's ability to provide advanced application
visibility is one of our competitive strengths," said Anil Singhal, president
and CEO of NetScout Systems. "As we integrate Quantiva's innovative analytics
with our nGenius solution, we will deliver an automated system for identifying
and diagnosing performance anomalies that will enhance NetScout's leadership
in networked application performance management."
Quantiva's patent-pending technology uses real time performance metrics to
establish statistically expected behavior values using advanced modeling and
analytics. When a measurement such as the response time of a critical business
application or jitter in a Voice-over-IP call is recognized as being outside
of the normal range, Quantiva's software automatically performs diagnostic
analysis to determine the likely cause. The final outcome is fewer, more
reliable alarms, accompanied by actionable diagnostic results, increasing IT
productivity, and improving business service dependability and responsiveness.
"Quantiva's technology provides a top-down approach to identifying and
qualifying anomalies affecting service performance so that problem resolution
is automated from the business service transaction downwards, across the
infrastructure. This provides a structural guarantee that anomalies will not
be analyzed, or even worse, presented to IT professionals for review unless
they are clearly aligned with a service performance issue," said Dennis
Drogseth, vice president, Enterprise Management Associates. "With Quantiva's
acquisition, NetScout has the potential to significantly enhance its industry
position and market outreach in this consolidating market."
"The Quantiva acquisition is an important milestone in NetScout's
strategic direction toward automated performance management," said Mr.
Singhal, "and it will give us significant time-to-market acceleration along
that path."
About NetScout Systems, Inc.
NetScout Systems, Inc. (Nasdaq: NTCT) is a market leader and pioneer of
integrated network and application performance management products and
solutions that unify performance across the enterprise. NetScout's nGenius
Performance Management System is helping more than 3000 leading companies
increase their return on infrastructure investments by optimizing the
performance of networks and applications according to business priorities.
NetScout is headquartered in Westford, Massachusetts and has offices
worldwide. Further information is available at http://www.netscout.com.
NetScout and the NetScout logo, nGenius, and Quantiva are registered
trademarks of NetScout Systems, Inc. The CDM logo, MasterCare and the
MasterCare logo, are trademarks of NetScout Systems, Inc. Other brands,
product names and trademarks are property of their respective owners. NetScout
reserves the right, at its sole discretion, to make changes at any time in its
technical information and specifications, and service and support programs.
Safe Harbor:
Forward-looking statements in this release are made pursuant to the safe
harbor provisions of Section 21E of the Securities Exchange Act of 1934.
Investors are cautioned that statements in this press release, which are not
strictly historical statements, including statements concerning the expected
effects of the acquisition, expected synergies and product offerings resulting
from the acquisition and the plans, objectives and future financial
performance of NetScout, constitute forward-looking statements which involve
risks and uncertainties. Actual results could differ materially from the
forward-looking statements. Risks and uncertainties which could cause actual
results to differ include, without limitation, risks and uncertainties
associated with the Company's ability to integrate the acquisition
successfully, costs associated with the acquisition, the ability to achieve
market introduction and acceptance of new products from the acquisition,
difficulties in managing geographically dispersed operations, and other
factors relating to acquisitions generally, as well as the Company's
relationships with strategic partners, dependence upon broad-based acceptance
of the Company's network performance management solutions, the Company's
ability to achieve and maintain a high rate of growth, introduction and market
acceptance of new products and product enhancements such as the delivery of
nGenius product platform probes and software solutions and the implementation
of the Company's CDM Technology strategy, the ability of the Company to take
advantage of service provider opportunities, competitive pricing pressures,
reliance on sole source suppliers, successful expansion and management of
direct and indirect distribution channels and dependence on proprietary
technology, as well as risks associated with a continued climate of tight IT
spending, and risks of further slowdowns or downturns in economic conditions
generally and in the market for network performance management solutions
specifically. For a more detailed description of the risk factors associated
with the Company, please refer to the Company's Annual Report on Form 10-K for
the fiscal year ended March 31, 2004 and its quarterly report on Form 10-Q for
the quarter ended December 31, 2004 on file with the Securities and Exchange
Commission. NetScout assumes no obligation to update any forward-looking
information contained in this press release or with respect to the
announcements described herein.
For Further Information:
Catherine Taylor
Director of Investor Relations
NetScout Systems, Inc.
978-614-4286
IR@netscout.com
SOURCE NetScout Systems, Inc.
/Web site: http://www.netscout.com/
(NTCT)