Sonus Networks To Buy Performance Technologies; Backs Q4, FY13 Targets

(RTTNews) - Sonus Networks Inc. (SONS), a SIP communications company, has agreed to acquire Performance Technologies, Inc.(PTIX), a supplier of advanced, high availability network communications solutions, for $3.75 per share in cash or about $30 million, net of Performance Technologies's cash and excluding acquisition-related costs.

The deal enables Sonus to expand and diversify its portfolio with an integrated, virtualized Diameter and SIP-based solution and deliver strategic value to service providers seeking to offer new multimedia services through mobile, Cloud-based, real-time communications. Strategic benefits of the transaction would include enhanced portfolio of offerings, significant addressable market and comprise of complementary assets.

The acquisition would be funded using Sonus' existing cash on hand and is expected to be accretive to its adjusted earnings per share for full year 2015 and mildly dilutive in 2014. The deal closure is expected in fiscal 2014 first quarter.

Looking ahead, the company reaffirmed its fourth-quarter and full year 2013 outlook. Sonus expects to provide 2014 guidance, that would include Performance Technologies' contribution pending the closing of the deal, when it reports its fourth-quarter and full year operating results in February 2014.