NetScout Gets Network General For $205M


Modern networks are a complex patchwork of
applications and protocols. Trying to troubleshoot performance and monitor activity is big business. Today it got bigger for NetScout Systems, which announced it was acquiring rival
Network General.


NetScout said it will acquire Network General from Silver Lake
Partners and Texas Pacific Group in a cash, stock, and debt deal valued at $205 million. Network General employees
are expected to become NetScout employees pending the close of the deal,
which is expect by November.


“We have been looking to join forces with Network General for some time, and
now the time is right to be making this acquisition,” Anil Singhal,
president and CEO of NetScout Systems said on an investor conference call
discussing the deal. “The combined company will have a larger and more
diversified customer base supported by a larger sales force.”


Network General is, perhaps, best known for its Sniffer product line, which
does deep-packet inspection. NetScout’s products are based on its key
performance indicator (KPI) Flow/Packet approach.


Singhal said that NetScout would continue to support Network General’s
products and customers, eventually merging the two companies’ products into one line. When that happens, Singhal noted that NetScout would provide an upgrade migration path for the combined installed user base.


Network General was created in 2004when Network Associates (now McAfee) spun out its Sniffer business as a separate entity in a
deal that was valued at $275 million.

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