Acquisition Expands Ixia's Reach into Live Networks
CALABASAS, Calif., May 07, 2012 (BUSINESS WIRE) --Ixia
(NASDAQ: XXIA), a leading, global provider of converged IP and wireless
network test solutions, announced today that it has entered into a
definitive agreement to acquire Anue Systems, Inc. ("Anue"), a leading
developer of Network Visibility solutions. Under the terms of the
agreement, Ixia will pay $145 million in cash, subject to certain
adjustments including an adjustment based on the amount of Anue's net
working capital at closing. The transaction is anticipated to close in
the second quarter of 2012, and is subject to customary closing
conditions and approvals.
Anue grew revenues 51 percent in 2011 to $40.5 million and generated
gross margins of 83 percent for the year. For the 12 months ended March
31, 2012, Anue generated $47.6 million in revenues. Ixia expects this
transaction to be accretive to non-GAAP earnings beginning in the third
quarter of 2012. Non-GAAP earnings exclude stock-based compensation,
amortization of acquired intangible assets, and other non-recurring
charges, net of the applicable tax effects.
As applications increasingly run in cloud networks and large data
centers, service providers and large enterprises need better visibility
into application performance. Traditional monitoring solutions cannot
scale to successfully analyze the number of applications, services, and
immense amounts of traffic across wired and mobile networks. Anue's Net
Tool OptimizerTM solution efficiently
aggregates and filters network traffic to help optimize network
monitoring tool usage. This efficiency creates significant customer
value by maximizing IT resources, streamlining network
troubleshooting, and expanding network monitoring capacity.
"Many networking trends such as the deployment of cloud and
virtualization, LTE and mobility driven growth, security implications of
applications delivered over cloud infrastructures, and the massive
expansion in bandwidth are fueling both Ixia's and Anue's growth," said
Vic Alston, Ixia chief operating officer. "Next-generation cloud
providers, mobility operators and enterprises all require network and
traffic visibility to maintain quality of service across application and
service delivery. Anue's Optimizer solutions provide customers with a
measurable value regarding performance, scale, and resiliency of
networks, while enabling the creation of a next generation platform for
quality of service delivery across live networks."
With the acquisition of Anue, Ixia will become a leading player in the
rapidly growing network visibility market - a market that is growing
over 30 percent per year and will enhance Ixia's service provider
presence and create new opportunities among enterprise customers.
Alex Pepe, Chief Executive Officer of Anue, said, "I'm truly excited
about the power of this combination and the opportunities it creates for
our respective customers and employees. This transaction will give Ixia
reach into our service provider and enterprise customers, while Anue's
products will benefit from Ixia's international channels. Ixia and Anue
together will bring value to customers by helping to build and operate
networks that deliver high value applications and services with quality,
scale and resiliency."
The terms of the agreement were unanimously approved by the boards of
directors of both Ixia and Anue.
Stifel Nicolaus Weisel is acting as financial advisor and Bryan Cave LLP
is acting as legal counsel to Ixia. MHT Partners is acting as financial
advisor and Vinson & Elkins is acting as legal counsel to Anue.
Ixia provides the industry's most comprehensive converged IP services
testing solution - from the wireless edge to the Internet core. Network
equipment manufacturers, service providers, enterprises and government
agencies use Ixia's industry-leading test and simulation platforms to
design and validate a broad range of wired, Wi-Fi and 3G/LTE networking
equipment and networks. Ixia's solutions create real-world conditions by
emulating a full range of high-scaling networking protocols and
generating media-rich application traffic to validate performance,
conformance and security of cloud, core, data center, wireless and
multiplay networks. For more information, visit www.ixiacom.com.
About Anue Systems, Inc.
Anue Systems, Inc. helps network engineers and scientists monitor and
test complicated networks. The Anue Systems Net Tool Optimizer(TM) provides
complete network visibility into physical and virtual networks, improves
network security and optimizes monitoring tool efficiency. The Anue
patented filtering technology and industry leading, easy-to-use control
panel help network engineers minimize network downtime and maximize
return on monitoring tool investment. Anue's Test and Measurement
division provides Network Emulation products that simulate real world
conditions for the testing and deployment of large networks. Founded in
2002, Anue customers include the world's largest data centers,
enterprise networks, service providers, and government agencies.
Ixia and the Ixia four-petal logo are registered trademarks or
trademarks of Ixia. Other trademarks are the property of their
Safe Harbor under the Private Securities Litigation Reform Act of 1995
Certain statements made in this press release are forward-looking
statements, including, without limitation, statements regarding the
potential acquisition of Anue and future financial performance. In some
cases, such forward-looking statements can be identified by terms such
as may, will, expect, plan, believe, estimate, predict or the like. Such
statements reflect our current intent, belief and expectations and are
subject to risks and uncertainties that could cause our actual results
to differ materially from those expressed or implied in the
forward-looking statements. Factors that may cause future results to
differ materially from our current expectations include the risk that
the conditions to the closing of our acquisition of Anue will not be met
or that the anticipated benefits and synergies of the acquisition will
not be realized, as well as those factors identified in our Annual
Report on Form 10-K for the year ended December 31, 2011, and in our
other filings with the U.S. Securities and Exchange Commission. We
undertake no obligation to update any forward-looking statements,
whether as a result of new information, future events or otherwise.
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SOURCE: Ixia and Anue Systems, Inc.
Kelly Maloit, 818-444-2957
of Public Relations
The Blueshirt Group
Maria Riley, 415-217-7722
Chief Financial Officer