JDSU Announces Definitive Agreement to Acquire Network Tools Business from Finisar
July 09 2009 - 7:50AM
PR Newswire (US)
MILPITAS, Calif., July 9 /PRNewswire-FirstCall/ -- JDSU today
announced that it has entered into a definitive agreement to
acquire the Network Tools business of Finisar Corporation. Network
Tools, which had revenue of $44.2 million in Finisar's fiscal year
2009 ending April 30, 2009, is the world's leading 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 and
the parties expect to close the transaction before the end of July
2009. (Logo:
http://www.newscom.com/cgi-bin/prnh/20050913/SFTU125LOGO) The
complementary acquisition, which JDSU expects to contribute
positive operating income in the second quarter of fiscal year
2010, includes the following strategic benefits: -- Expanded JDSU
lab test market presence -Network Tools' customers include the
world's leading storage network system and component manufacturers,
system integrators as well as enterprises operating major data
centers. The transaction will immediately expand JDSU's addressed
market and create new growth opportunities from the combined test
expertise of JDSU and the Network Tools business. -- Product
Innovation - The combination of JDSU's communications test
development expertise in areas such 40/100G with Network Tools'
strength in storage network protocol test will fuel product
innovation addressing Fibre Channel over Ethernet and other
emerging SAN test market opportunities. -- New Growth Opportunities
- The Network Tools business will be positioned to leverage JDSU's
established global sales channels and customer service and support
organization to fuel growth of its storage network test product
line in markets worldwide. "The Network Tools business is an
excellent strategic fit with JDSU," said 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 a wide range
of storage protocols, such as Fibre Channel, Gigabit Ethernet,
10GigE, iSCSI, SAS and SATA. Its products and services, used in the
development and field deployment of storage networks, include: --
The Xgig(R), the storage industry's number one test platform, and
Xgig Expert, the leading storage protocol analysis and
troubleshooting software. The Xgig product line includes
first-to-market analysis and troubleshooting capabilities for the
8G Fibre Channel and 6G SAS/SATA protocols. Xgig data generation
and load testing capabilities include solutions for 10G Fibre
Channel over Ethernet. -- The Bus Doctor(R), a leading
multi-analysis test platform for consumer electronics design and
interoperability testing, addressing the wide range of protocols
used in the development and manufacturing of desktop, notebook, and
other personal computing devices. -- Medusa Labs, which provides
SAN protocol analysis and test training and services. Medusa Lab
services include outsourced design verification and performance
testing in a live, fully built storage network environment. Medusa
Labs also provides SAN protocol training. 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. About JDSU JDSU (Nasdaq: JDSU; and
TSX: JDU) enables broadband and optical innovation in the
communications, commercial and consumer markets. JDSU is the
leading provider of communications test and measurement solutions
and optical products for telecommunications service providers,
cable operators, and network equipment manufacturers. JDSU is also
a leading provider of innovative optical solutions for
medical/environmental instrumentation, semiconductor processing,
display, brand authentication, aerospace and defense, and
decorative applications. More information is available at
http://www.jdsu.com/. Contacts Press/Industry: Jim Monroe, +1
240-404-1922 or Investors: Michelle Levine, +1 408-546-4421 or
Certain statements contained in this press release that are not
purely historical are forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Act of 1934. Such forward-looking statements include,
but are not limited to any statement or implication that Finisar
Network Tools' operations, sales channels and business will be
successfully incorporated into JDSU, or that Finisar Network Tools'
products described in this presentation (i) will be successfully
introduced or marketed, (ii) will be qualified and purchased by our
customers, or (iii) will perform to any particular specifications
or performance or reliability standards. Such forward-looking
statements involve risks and uncertainties that, if realized, could
materially impair the Company's results of operations, business,
and financial condition. These risks and uncertainties include the
following, among other things: (a) our current visibility as to
customer demand levels, future market growth and the timing,
extent, location, requirements and nature of network build-outs and
technology transitions, is extremely limited; (b) our ability to
retain key employees within the Network Tools business during the
transition phase after the transaction closes; (c) our ability to
integrate this new business into our Communications Test and
Measurement business segment without interruption to the operation
of the business and while generating positive operating income; (d)
the products may not (i) perform as expected without material
defects, (ii) be manufactured at acceptable volumes, yields, and
cost, (iii) be qualified and accepted by our customers, and (iv)
successfully compete with products offered by our competitors, (e)
anticipated synergies in product innovation and development and
services may not materialize; and (f) factors discussed from time
to time in reports filed by the Company with the Securities and
Exchange Commission. The forward-looking statements contained in
this presentation are made as of the date hereof, and the Company
does not assume any obligation to update or qualify any of the
statements made herein.
http://www.newscom.com/cgi-bin/prnh/20050913/SFTU125LOGO
http://photoarchive.ap.org/ DATASOURCE: JDSU CONTACT:
Press/Industry: Jim Monroe, +1-240-404-1922, ; or Investors:
Michelle Levine, +1-408-546-4421, , both of JDSU Web Site:
http://www.jdsu.com/
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