Sonus Set to Acquire Performance Technologies

15 Dec 2013

Sonus Networks is preparing to grow and expand with a new acquisition in its future. The company has announced a definitive agreement to acquire Performance Technologies, Inc., at a cost of approximately $30 million.

Both companies' boards of directors approved the agreement unanimously. Sonus will acquire all outstanding shares of PT for a cash value of $3.75 per share, around 25 percent greater than PT's closing share on December 12. Altogether, that comes to about $30 million, excluding acquisition-related costs.

With the acquisition of PT, Sonus will be able to add an integrated, virtualized Diameter and SIP-based solution to its portfolio, as well as provide more value to service providers looking to provide multimedia services. PT has an expansive portfolio of IP-centric SEGway signaling products, including Diameter Signaling Controllers (DSC), which is expected to grow in demand until its market is worth nearly $1 billion in 2017.

According to UCStrategies UC Expert Art Rosenberg, "The wireless carriers and service providers are moving quickly towards mobile LTE networks that are not just voice connections, but multimodal digital data connections that require much greater amounts of two-way signaling. So, as users with smartphones and tablets increasingly interact with both people and online applications with all modes of communication, the need for Diameter signaling control is expected to explode. Accordingly, Sonus is wisely getting ready to support this dramatic shift in network connectivity for its customers."

According to Kevin Kieller, UCStrategies UC Expert, "The Sonus acquisition of Performance Technologies is a bet on a future where today's traditional endpoints increasingly become mobile devices. Performance Technologies brings to Sonus the ability to support Diameter Signaling Controllers (DSC) which enables support for LTE and mobile broadband."

Not only will Sonus improve its portfolio of solutions and offerings, but it can also reach a wider market. Industry analysts are expecting Diameter traffic to increase, thanks in large part to mobile devices, so Sonus will be able to take advantage of that with the DSC offerings from PT. As the DSC market is an extension of the SBC market, which serve as points of entry into core IP networks, the solutions offered by PT complement those Sonus already offers, making this a valuable acquisition for Sonus.

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