Telecom Lead India: Test & Measurement major Spirent
Communications is set to buy Mu Dynamics for $40 million.
Mu is a security testing pioneer, offering solutions that
enable faster, higher quality deployments of Cloud applications and applications-aware
networks.
The acquisition is line with Spirent strategy of
delivering profitable growth through expanding our capabilities in growing and
emerging technology markets.
Spirent will be selling, supporting and enhancing Mu’s
existing product portfolio. Additional revenue will be achieved from Spirent’s
global reach, its strong customer relationships and sales channels in Europe
and Asia.
Spirent expects to consolidate $9.0 to $10.0 million in
revenue post-acquisition in 2012, with a positive return on sales.
For the first full year post-acquisition in 2013,
revenues are expected to be in the range of $17.0 to $19.0 million operating at
Spirent’s average return on sales, resulting in a positive enhancement to
earnings.
Mu Dynamics brings additional market-leading expertise
in cyber security, usability and application emulation to the Spirent solutions
portfolio. Combining Mu’s software-based applications and security testing
capabilities with Spirent’s market-leading performance test platforms will
enable us to rapidly create best-in-class security test solutions with higher
performance and greater scale than any other provider,” said Bill Burns, CEO of
Spirent.
Benefits will be realized through the integration of Mu’s
differentiated capabilities into Spirent’s performance test platforms,
accelerating the growth rate for Spirent’s networks and applications product
line.
Mu has built a powerful software solution set for our
customers, enabling them to test security and application-aware networks. We’re
excited that this transaction will accelerate the global deployment of our
solutions, and enable their integration into Spirent’s leading performance test
solutions,” said Dave Kresse, CEO of Mu Dynamics.
Mu recently launched Blitz.io, a Cloud-based service that
allows enterprise application and website developers to test users’ quality of
experience of Software as a Service” deployments. This capability will enable
Spirent to serve the high-growth Cloud-based Application Performance Management
market.
