Converged networking solutions provider Emulex (News - Alert) Corporation intends to acquire network performance management company Endace Limited. Endace provides network monitoring appliances, network analytics software and ultra-high speed network access switching.
Emulex issued a Takeover Notice to make the acquisition, per the New Zealand Takeovers Code. This enables the company to make an offer to acquire all outstanding equity interests in Endace in an all cash transaction. Emulex supplies network visibility infrastructure products through a software-defined convergence architecture.
The solutions provider will make a cash offer, with the total transaction valued at around $130 million. A combination of Emulex's architecture with network visibility infrastructure from Endace will offer customers innovative ways to solve their network complexity challenges. Combining forces will also ensure application-level performance at speeds of 10 GB and beyond.
Endace has the capabilities to record, visualize and monitor network traffic and also provides customers the ability to optimize application delivery across the infrastructure. Emulex's network convergence adapters combined with Endace's network visibility capabilities will enable Emulex to provide end-to-end application visibility, optimization and acceleration.
The acquisition is expected to be completed in the March quarter, subject to closing conditions.
"This acquisition provides Emulex with a strategic entry point into the network performance management space at a disruptive point in time, as speeds move to 10Gb, making network visibility from end-to-end a critical requirement in a converged network environment," said Jim McCluney, CEO, Emulex, in a statement. "Acquiring Endace aligns with our software-defined convergence strategy, doubles our total addressable market and places Emulex in another high-margin, high-growth market. Excluding transaction related expenses, we expect the acquisition to be neutral to our non-GAAP earnings per share for fiscal 2013 and accretive at the beginning of fiscal 2014."
"The Endace team is excited to be joining forces with Emulex," said Mike Riley, CEO, Endace. "Our companies share a common vision and have a strong cultural affinity. Together, we will create a new generation of network visibility solutions and take them to a global market. The combined strengths of Emulex and Endace will provide our customers with industry-leading solutions to connect, monitor and manage high-performance networks in the world's most demanding data center environments."