July 13, 2009 -- JDSU has entered into a definitive agreement to acquire the Network Tools business of Finisar Corp. Network Tools, which had revenue of $44.2 million in Finisar's fiscal year 2009 ending April 30, 2009, is a provider of storage area network (SAN) protocol test tools, software, and services.
Under the terms of the agreement, JDSU will acquire the Network Tools business for approximately $40.6 million in cash; the parties expect to close the transaction before the end of July 2009. JDSU expects the acquisition to contribute positive operating income in the second quarter of fiscal year 2010.
Network Tools' customers include storage network system and component manufacturers and system integrators, as well as enterprises operating major data centers. The transaction will immediately expand JDSU's addressed market and is expected to create new growth opportunities from the combined test expertise of JDSU and the Network Tools business.
JDSU says the combination of its communications test development technology in areas such 40/100G with Network Tools' strength in storage network protocol test will address products for Fibre Channel over Ethernet (FCoE) and other emerging SAN test market opportunities.
The Network Tools business will be positioned to utilize JDSU's global sales channels and customer service and support organization to fuel growth of its storage network test product line in global markets.
"The Network Tools business is an excellent strategic fit with JDSU," says Dave Holly, president of JDSU's Communications Test and Measurement business segment. "The acquisition will immediately establish JDSU as the leading provider of storage network test solutions and create new opportunities to deliver innovation and enhanced services to our lab and manufacturing customers from our combined test expertise."
The Network Tools portfolio, focused on the SAN analysis and data-generation and load-testing segments, specializes in storage protocols such as Fibre Channel, Gigabit Ethernet (GbE), 10GbE, iSCSI, SAS, and SATA. Its products and services, used in the development and field deployment of storage networks, include the Xgig test platform; Xgig Expert storage protocol analysis and troubleshooting software; the Bus Doctor multianalysis test platform for consumer electronics design and interoperability testing; and Medusa Labs, which provides SAN protocol analysis and test training and services.
The Network Tools business, currently headquartered in Sunnyvale, CA, includes more than 100 employees worldwide. Upon close of the transaction, Network Tools will form the Storage Network Test unit in the Instrument Business Division of JDSU's Communications Test and Measurement business segment. Dave Buse will continue to lead the business, reporting to Jerry Gentile, general manager of JDSU's Instrument Business Division.
On the Web:
www.jdsu.com
www.investor.finisar.com