Sonus Networks to buy Network Equipment Technologies
(Reuters) - Sonus Networks (SONS.O) will buy smaller rival Network Equipment Technologies (NET) NWK.O for $41.3 million to add to its communication solutions portfolio.
Sonus, which makes voice and data communication equipment, will pay $1.35 for each NET share, a premium of 14.4 percent to NET's Monday closing price.
NET also provides networking equipment for voice, data and multimedia transmission.
Shares of NET closed at $1.18 on Monday on the Nasdaq, giving the company a market value of about $36 million.
Sonus expects the deal to add about $15 million to $20 million to its revenue in the second half of fiscal 2012.
If the deal adds $20 million to Sonus' revenue, it will have no impact on or will slightly add to its adjusted earnings in the second half, the company said.
However, if it adds only $15 million, adjusted earnings will be hit by about 1 cent per share.
The all-cash deal is expected to close in the third quarter of 2012.
(Reporting by Sruthi Ramakrishnan in Bangalore; Editing by Sreejiraj Eluvangal)