Boston, MA 10/13/2014 (wallstreetpr) – According to reports, NetScout Systems, Inc. (NASDAQ:NTCT) has decided to acquire the communication business of Danaher Corporation (NYSE:DHR). NTCT is a well-known name in the field of operational intelligence and performance analytics.
Insights of the announcement:
NetScout Systems, Inc. (NASDAQ:NTCT) has entered into a definitive agreement with DHR in order to acquire Tektronix Communications, certain parts of Fluke Network and Arbor Networks. As per the terms of the agreement, all the shareholders of DHR will get 62.5 million shares of NTCT common stock. The announcement was made on October 10 in regard with this transaction; therefore, the closing price of NTCT’s shares would be taken into consideration. On the basis of $41.91 per share, the total value of this transaction is about $2.6 billion. NTCT will be benefitted significantly from this transaction. Experts anticipate that not only will this agreement strengthen NTCT’s reach in the service sector, but also in the enterprise market. Along with functionality, customer base of the company will also increase in coming time.
Danaher Corporation (NYSE:DHR) is a well-known firm in the field of Cyber Intelligence market, which means that after the execution of the agreement, NetScout Systems, Inc. (NASDAQ:NTCT) will be able to enter into this field. Total revenue of combined entity is expected to generate more than $1.2 billion of revenue in the first year itself. NTCT is expecting this transaction to get closed by the first half of fiscal year 2016. Management of the company is very delighted with the execution of this transaction. According to Anil Singhal, Co-Founder, CEO and President of NTCT, with the help of this transaction, NetScout Systems, Inc. (NASDAQ:NTCT) will be able to enhance its ability to compete on a broader level. It’s a strong and one of the largest milestones that the company has achieved so far. Not only will it help the company to implement NetScout 3.0 strategy completely, but also maximize NTCT’s potential.