Juniper Networks Inc, has announced that it has signed a
definitive agreement to acquire Kagoor Networks. The transaction is valued at
$67.5 million in cash, plus options and certain other incentives and equity
According to the press release, the combination of Juniper
Networks' secure and assured networking solutions and Kagoor's session
border control (SBC) technology, delivers a powerful solution for network
operators looking to cost-effectively deploy quality Voice over Internet
Protocol (VoIP) and other rich media services. Session border control technology
is also one of the key building blocks required for infranets.
Headquartered in San Mateo, California, with an R&D
center in Herzelia, Israel, Kagoor brings to Juniper Networks a highly skilled
engineering team with deep voice expertise. In addition, the company's
VoiceFlow SBC products are installed in over 100 carriers worldwide, most of
which also use Juniper Networks' platforms. Kagoor also brings powerful
synergies through a number of common strategic partnerships includ-ing Lucent,
Siemens and NEC. Juniper will leverage the acquisition to establish an Israeli
R&D center, which will tap into the strong engineer-ing talent pool in
"Network operators world-wide are increasingly looking
to deliver enhanced VoIP and other rich services to their enterprise and
consumer customers, but they need to do this in a secure and assured fashion.
SBC technology is a key element in delivering these
attributes. With Kagoor, Juniper gains best-in-class SBC technology and an
acknowled-ged center of excellence in voice," commented Juniper Networks
security products group GM Kittu Kolluri.
The acquisition is expected to close in the second quarter of
2005 subject to certain customary closing conditions. Kagoor generated less than
$five million of revenue in 2004 and it is expected to be less than $0.01 per
share dilutive to Juniper Networks in 2005 and to be accretive in 2006.