Oct 13, 2014 7:14 AM
NetScout buying Danaher's communications business
The Associated Press
WESTFORD, Mass. (AP) NetScout is buying Danaher's communications business in a stock deal valued at approximately $2.6 billion.
The communications business includes Tektronix Communications, Arbor Networks, and certain parts of Fluke Networks. The communications business had revenue of about $836 million in fiscal 2013.
Shareholders of Danaher Corp. will receive about 62.5 million shares of NetScout. They will own about 59.5 percent of the combined company, while NetScout stockholders will own approximately 40.5 percent.
NetScout co-founder and CEO Anil Singhal said Monday that the deal will allow it to better compete in IT management and cyber intelligence.
Danaher Executive Vice President James Lico will join NetScout's board once the deal is complete, boosting the board's size to eight members. Singhal will remain NetScout's president, CEO and chairman.
The boards of both companies unanimously approved the acquisition, targeted to close in the first half of NetScout's fiscal 2016. It still needs approval from NetScout shareholders.
NetScout Systems Inc. is based in Westford, Massachusetts. Danaher is based in Washington D.C.