|[April 20, 2012]
Spirent Communications plc Signs Definitive Agreement to Acquire Mu Dynamics, Inc.
LONDON --(Business Wire)--
Spirent (News - Alert) Communications plc (LSE: SPT) ("Spirent"), a leading
communications technology company, announces today that it has entered
into a definitive agreement to acquire privately held Mu Dynamics (News - Alert), Inc.
("Mu"), based in Sunnyvale, California, for a cash consideration of
$40.0 million. Mu is a security testing pioneer, offering innovative
solutions that enable faster, higher quality deployments of Cloud
applications and applications-aware networks.
The exponential growth in Cloud-based applications presents critical
security risks for equipment manufacturers, service providers,
governments, enterprises and end users, requiring them to protect
themselves against sophisticated new threats, in order to avoid
financial and reputational damage. To address this fast-growing
opportunity, Mu developed the industry's first solution that emulates
real application traffic while generating comprehensive security
threats, addressing all phases of the development lifecycle. Mu also
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
"Infrastructure security testing is critical to ensuring confidence in
the use of globally-deployed networks and applications," said Bill
Burns, CEO of Spirent. "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. This acquisition aligns with our
strategy of delivering profitable growth through expanding our
capabilities in growing and emerging technology markets."
Spirent is committed to selling, supporting and enhancing Mu's existing
product portfolio. Meaningful additional revenue will be achievd from
Spirent's global reach, especially its strong customer relationships and
sales channels in Europe and Asia. Further 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," said
Dave Kresse (News - Alert), CEO of Mu Dynamics. "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."
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 and achieving an
attractive return on investment, in line with Spirent's objectives.
The transaction is subject to customary closing conditions and is
expected to complete on or about 23 April 2012.
About Spirent Communications (News - Alert) plc
Spirent Communications plc is a global leader in test and measurement
inspiring innovation within development labs, communication networks and
IT organisations. We enable today's communication ecosystem as well as
tomorrow's emerging enterprises to deploy life-enriching communications
networks, devices, services and applications. The Systems group develops
power control systems for electrical vehicles in the mobility and
industrial markets. Spirent Communications' sales to the United
States government are made through Spirent Federal Systems Inc. Further
information about Spirent Communications plc can be found at www.spirent.com.
Spirent Communications plc Ordinary Shares are traded on the London
Stock Exchange (ticker: SPT). The Company operates a Level 1 American
Depositary Receipt ("ADR") programme with each ADR representing four
Spirent Communications plc Ordinary Shares. The ADRs trade in the US
over-the-counter ("OTC") market under the symbol SPMYY and the CUSIP
number is 84856M209. Spirent ADRs are quoted on the Pink OTC Markets
electronic quotation service which can be found at www.pinksheets.com.
Spirent and the Spirent logo are trademarks or registered trademarks of
Spirent Communications plc. All other trademarks or registered
trademarks mentioned herein are held by their respective companies. All
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