Tuesday, June 19, 2012

Sonus (Nasdaq: SONS) To Buy Network Equipment Technologies For $42M

Sonus (Nasdaq: SONS) To Buy Network Equipment Technologies For $42MOrlando, FL 6/19/12 (StreetBeat) -- Sonus Networks (Nasdaq: SONS) this morning said it agreed to buy Network Equipment Technologies (Nasdaq: NWK) for $1.35 a share, or about $42 million. The deal is expected to close in Q3, subject to approval by Network Equipment holders and regulatory review.

Sonus expects the deal to boost revenue by $15 million to $20 million in the 2012 second half, with the recognized amount dependent on the close date. At the $15 million level, Sonus said, it would expect a 3 cent dilution to EPS in the second half on a GAAP basis, or a penny a share on a non-GAAP basis. At the $20 million level, Sonys expects GAAP dilution of 2 cents, and a break-even to slightly accretive impact on non-GAAP results.

Sonus said the deal is consistent with its strategy of expanding its capabilities into the enterprise market.

The company noted that the purchase price is a 14.4% premium to yesterday’s closing level.

In Tuesday morning trading, Sonus shares are up a penny at $2.35; Network Equipment is up 16 cents, or 13.6%, to $1.34.

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