- Opens New $1 Billion+ Enterprise Networking, Cloud and Data Center Markets
- Expands Higher-Margin, Software-Based Solutions
- Creates New Growth Opportunities for Network Instruments Products in Carrier Market
Milpitas, Calif., Jan. 6, 2014 - JDSU (NASDAQ: JDSU and TSX: JDU) today announced it has completed the acquisition of Network Instruments, a leading developer of enterprise network and application performance management solutions for global 2000 companies. On December 11, 2013, JDSU announced its intent to acquire Network Instruments for $200 million in cash, subject to certain adjustments.
The acquisition of Network Instruments further strengthens JDSU as a key solutions provider to the enterprise, data center and cloud networking markets. It expands the addressable market for JDSU’s Network and Service Enablement business segment by more than $1 billion in markets experiencing double-digit percentage growth annually, including the application-aware network performance management and network packet broker markets.
“The requirements of enterprise and carrier networks are rapidly converging, making this a highly complementary acquisition for JDSU,” said David Heard, president of JDSU’s Network and Service Enablement business segment. “We welcome the talented Network Instrument’s team and look forward to working with them on new and differentiated solutions that continue to benefit both markets.”
Network Instruments, which had annual revenue of approximately $40 million for the trailing twelve month period and has 125 employees, will become a part of JDSU’s Network and Service Enablement business segment. JDSU expects the acquisition to be accretive to earnings on a non-GAAP basis starting in the fourth quarter of FY14.
JDSU (NASDAQ: JDSU; and TSX: JDU) innovates and collaborates with customers to build and operate the highest-performing and highest-value networks in the world. Our diverse technology portfolio also fights counterfeiting and enables high-powered commercial lasers for a range of applications. Learn more about JDSU at www.jdsu.com and follow us on JDSU Perspectives,Twitter, Facebook and YouTube.
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Forward Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements involve risks and uncertainties that could cause actual results to differ materially from those projected. Such statements may include: (i) JDSU’s plans and projections related to the acquired products and (ii) the expected impact of the acquisition on JDSU’s earnings and the timing of such impact. These forward-looking statements are not guarantees of future performance and involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied, including, without limitation, the following: (a) we have limited visibility into future market growth and customer demand, (b) we may be unable to retain key Network Instruments employees, (c) we may face difficulties integrating the Network Instruments business into our NSE business segment, which could disrupt the existing business and prevent us from fully recognizing the anticipated benefits of the transaction, (d) anticipated synergies in product innovation and development may not materialize and (e) other risks discussed from time to time in the reports filed by JDSU with the Securities and Exchange Commission.
For more information on these and other risks affecting JDSU’s business, please refer to the “Risk Factors” section included in Part I, Item 1A of JDSU’s Annual Report on Form 10-K dated August 23, 2013 filed with the Securities and Exchange Commission. The forward-looking statements contained in this news release are made as of the date hereof and JDSU does not assume any obligation to update them.