Seeking Alpha

Sonus buying Performance Technologies for $30M

  • Sonus (SONS +0.7%) is acquiring Performance Technologies (PTIX +24.3%), a player in the fast-growing 4G diameter signaling software space, for $3.75/share in cash, or $30M net of cash on hand and acquisition-related costs. The price represents a 24% premium to PTIX's Thursday close. (PR)
  • The acquisition allows Sonus to address another fast-growing telecom software market, albeit one where it'll face plenty of competition - F5, Oracle, Ericsson, Alcatel-Lucent, and Huawei are some of the other firms with diameter signaling offerings. Sonus has already been offsetting soft demand for its mainstay VoIP gateways by growing session border controller sales.
  • The deal is expected to close in Q1 2014. Sonus sees it diluting 2014 EPS by $0.02 or less, but being accretive to 2015 EPS.
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