JDSU will acquire Network Instruments, a developer of enterprise network and application-performance management solutions for $200 million in cash.

The acquisition of Network Instruments strengthens JDSU as a T&M solutions provider to the enterprise, data center and cloud networking markets.

In addition, it expands the addressable market for JDSU’s Network and Service Enablement business segment by more than $1 billion in markets growing at nearly 13 percent, including the application-aware network performance management and network packet broker markets.

Network Instruments, which had annual revenue of approximately $40 million for the trailing twelve month period, will also add approximately 125 employee base to JDSU that includes research and development, sales, marketing and production teams with decades of experience in the enterprise market.

Network Instruments helps enterprises simplify the management and optimization of their networks with high-performance solutions that provide actionable intelligence and deep network visibility.

As enterprise and carrier network performance management requirements converge, driven by an increasing number of connected mobile devices and the need for improved visibility into application performance, JDSU and Network Instruments are qualified to create differentiated solutions for both markets.

“Network Instruments has outstanding new products and an excellent reputation across the enterprise market with nearly twenty years of experience and strong customer relationships,” said David Heard, president of the Network and Service Enablement business segment at JDSU.

Network Instruments has put the highest priority on product performance and reliability and brings a long track record of profitable growth. The Network Instruments Observer and GigaStor line of network and application management tools are considered some of the best in the market for ease-of-use, scalability, feature sets and performance.

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