NetScout To Buy Network General For $205 Million

NetScout Systems reported Thursday that it will acquire Network General for $205 million in a deal that will add Network General's expert packet analysis and data mining expertise to the network management company.

The combined cash, stock, and debt transaction is expected to be completed by early November. NetScout, which provides network and service assurance measures to large IT and telecom entities, said the addition of Network General will enable it to double its R&D spending. NetScout also predicted the combination will help accelerate revenue growth via a broader and integrated product portfolio.

"We are bringing together two established companies with complementary technologies to form a new stronger organization that will have the scale, technology, and mindshare to meet some of the greatest challenges associated with vitualization, convergence, SOA, and highly distributed network-centric operations," said Anil Singhal, NetScout Systems' president and CEO, in a statement.

NetScout said the addition of Network General would help its new drive into the wireless service provider segment, enabling it to offer products and services across a broad spectrum of performance monitoring and troubleshooting.

Ken Hao, a spokesman for investors Silver Lake and TPG, said: "We have long believed in the potential of packet-flow technology. This combination will accelerate our ambition to propel these solutions into their destined role as critical components of tomorrow's service-centric operating environments."

NetScout said Silver Lake and TPG, as shareholders in the combined company, are expected to join the NetScout board of directors.