Tektronix Acquires Inet Technologies for $325M

Tektronix Inc. said it plans to acquire Inet Technologies

Under terms of the deal, Tektronix will acquire all of Inet’s outstanding stock for approximately $12.50 per share, consisting of $6.25 per share in cash and approximately $6.25 per share in Tektronix’ stock, with the net purchase price totaling about $325 million after adjusting for Inet’s $172 million cash balance as of March 31.

Founded in 1989 and profitable every year since 1990, Richardson, Texas-based Inet provides communications software solutions for next-generation networks such as 2.5G and 3G mobile data and voice-over-packet technologies, and traditional networks. The company employs about 500 people worldwide and saw $104 million in 2003 sales.

When it becomes part of Tektronix’ communications and video business, sales from products that address the network monitoring and protocol test markets are expected to exceed $200 million, which would make Tektronix one of the largest providers in this segment.

“This combination represents a unique opportunity to build on that success by adding Inet’s leadership in its target markets -- especially mobile data -- to Tektronix’ capabilities and relationships with mobile equipment manufacturers," said Rick Wills, chairman and CEO of Tektronix, in a statement. "We intend to leverage product and technology synergies to enable us to accelerate product development and bring new products to customers faster. In addition, network operators and equipment manufacturers will be able to access, from one supplier, all of their network monitoring and protocol test needs across the technology ‘food chain.'”

Tektronix expects the transaction to close around September 30