By Lisa Kerner
Charlotte, N.C., May 11 - Ixia said it agreed to acquire Catapult Communications Corp. for $9.25 per share in cash in a transaction valued at approximately $105 million, or $63 million net of Catapult's cash and investments.
Catapult's board of directors has unanimously recommended in favor of the deal, which is expected to close in the third quarter, according to an Ixia news release.
Ixia said it plans to begin a tender offer within the next 10 business days for all of Catapult's outstanding shares to be followed by a second-step merger.
The transaction is expected to be accretive to Ixia's non-GAAP earnings as early as the fourth quarter of 2009.
"This acquisition will position Ixia as a leading source for end-to-end IP test solutions for wireline and wireless networks," Ixia president and chief executive officer Atul Bhatnagar said in a company news release.
"In addition to immediately expanding our addressable market and making us a leader in 3G and 4G wireless testing, the acquisition will help drive top and bottom line growth."
Ixia is being advised by Thomas Weisel Partners LLC.
Based in Calabasas, Calif., Ixia provides test systems for IP-based infrastructure and services.
Catapult, located in Mountain View, Calif., develops and supports software-based test systems for the telecommunications industry.
| Acquirer: | Ixia
|
| Target: | Catapult Communications Corp.
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| Announcement date: | May 11
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| Transaction total: | $105 million
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| Price per share: | $9.20
|
| Expected closing: | Third quarter of 2009
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| Stock price of target: | Nasdaq: CATT: $8.45 on May 8
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