Combining the best of nGenius and Sniffer technologies, to provide superior customer value
WESTFORD, Mass.--(BUSINESS WIRE)--Nov. 1, 2007--NetScout Systems,
Inc. (NASDAQ: NTCT), an industry leader for advanced network and
application performance management, has finalized the acquisition of
privately-held Network General Corporation, a longtime leader in
packet-level network analysis and data mining. NetScout will
immediately begin executing the planned integration of the two
companies' technologies and operations.
The acquisition enables NetScout to offer customers best-of-breed
early-warning capability, real-time and historical application flow
analysis, and deep packet forensics. The combined company will possess
the scale, technology, and mind share required to address and meet the
substantial operational challenges posed by virtualization,
convergence, SOA and highly distributed network-centric operations.
The transaction will be valued at approximately $206 million for
purchase accounting purposes. The acquisition was financed with a
combination of 6 million shares of NetScout common stock, $100 million
of NetScout debt securities, and $50 million in cash, subject to
adjustments. Affiliates of Silver Lake Partners, TPG and Integral
Capital Partners provided the debt financing and became NetScout
stockholders. In addition, representatives of Silver Lake Partners and
TPG will join NetScout's board of directors.
"On their own, NetScout's nGenius and Network General's Sniffer
brands were trusted names in the data center and substantial forces in
the industry," noted Michael Szabados, Chief Operating Officer of
NetScout. "Throwing our combined weight at tomorrow's most difficult
network management challenges, we will elevate and advance the state
of the art in packet-flow performance management solutions to the
benefit of our customers and the networking industry as a whole."
About NetScout Systems
NetScout Systems, Inc. (NASDAQ: NTCT) has been an industry leader
for advanced network and service assurance solutions for over twenty
years. NetScout's breakthrough technology solutions provide trusted,
comprehensive real-time and historical performance intelligence,
including advanced early warnings and rapid, definitive problem
analysis. These capabilities are vital to IT operators who are
accountable for reducing the Mean Time to Resolution. The world's
largest enterprises, government agencies, and service providers depend
upon NetScout's nGenius and Sniffer (formerly Network General) brands
to assure service levels to their users by reducing or preventing
disruptions and degradations. More information about NetScout is
available at http://www.netscout.com.
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 and other federal securities laws. Investors are cautioned
that statements in this press release, which are not strictly
historical statements, including 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, the
incurrence of debt, 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, 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, and
risks of 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, 2007 and
Quarterly Report on Form 10-Q for the quarter ended June 30, 2007 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.
NetScout, the NetScout logo, Network General, the Network General
logo, nGenius and Sniffer are trademarks or registered 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.
CONTACT: NetScout Systems, Inc.
Catherine Taylor, 978-614-4286
Director, Investor Relations
IR@netscout.com
or
NetScout Systems, Inc.
Christine Johansen, 978-614-4113
Manager, Public Relations
johansenc@netscout.com
or
Davies Murphy Group, Inc.
Brian Alberti, 781-418-2403
netscout@daviesmurphy.com
SOURCE: NetScout Systems, Inc.