Ixia to Acquire BreakingPoint Systems

Ixia, a leading, global provider of converged IP and wireless network test and visibility solutions, announced today that it has entered into a definitive agreement to acquire BreakingPoint Systems, Inc. (“BreakingPoint”), a leader in security testing, for $160 million in cash, subject to adjustment based on BreakingPoint’s net working capital and cash at closing. The transaction is anticipated to close in the third quarter of 2012, and is subject to customary closing conditions and approvals.

The acquisition of BreakingPoint enables Ixia to provide an end-to-end solution that monitors, tests, and optimizes converged networks. Without an ongoing security and performance-testing regimen, even the most sophisticated networks and data centers fail to ensure business continuity in the face of crippling cyber attacks and dynamic application conditions.
 
BreakingPoint’s solutions provide global visibility into emerging threats and applications, along with advance insight into the resiliency of an organization’s IT infrastructure under operationally relevant conditions and malicious attacks. BreakingPoint’s network processor-based simulation and testing platform creates global application and live attack traffic at Internet-scale. Enterprises, service providers, and government agencies worldwide depend on BreakingPoint’s products to battle-test wired and wireless infrastructures, deploy compact cyber ranges, optimize network and data center systems, and transform security processes to be proactive and effective.
 
“The current threat landscape is changing everything –from the way we conduct business, to how we protect data and secure infrastructures, to the ways we train cyber warriors,” said Vic Alston, Ixia’s president and chief executive officer. “This dynamic IT landscape is creating a growing demand for solutions that provide definitive and current insight into the resiliency of critical IT infrastructures and defenses. The use of disparate testing tools, threat intelligence, and monitoring products allows dangerous security vulnerabilities that erode the security posture of businesses and government agencies. By leveraging BreakingPoint with Ixia’s integrated portfolio of proven network test products, customers will have available to them an end-to-end solution to help ensure business continuity for enterprises and government organizations.”
 
BreakingPoint grew revenue over 40 percent in calendar 2011 to $33.5 million while generating gross margin of 87 percent for the year. For calendar 2012, Ixia expects BreakingPoint’s revenue to again grow by more than 40 percent, and anticipates that the BreakingPoint transaction will be accretive to non-GAAP earnings in the first full quarter of operations after the acquisition closes. Non-GAAP earnings exclude stock-based compensation, amortization of acquired intangible assets, and other non-recurring charges, net of the applicable tax effects.

“As a leader in cyber security research, BreakingPoint has built a library of more than 34,000 attacks, exploits, malware, and more,” said Dennis Cox, co-founder and Chief Technology Officer of BreakingPoint. “Joining forces with Ixia creates a powerful platform in security and application testing – one with an extensive global sales reach into enterprises, service providers, and government agencies.”

Ixia also updated its revenue guidance for the second quarter of 2012 to a range of $87 million to $89 million for its core business. This compares to the previously stated guidance of $86 million to $89 million. In addition to this amount, Ixia expects its recent Anue Systems, Inc. acquisition to add approximately $3 million to $4 million in additional revenue in the second quarter for the period from the June 1, 2012 acquisition closing date to June 30, 2012.

Stifel Nicolaus Weisel is acting as financial advisor and Bryan Cave LLP is acting as legal counsel to Ixia. AGC Partners is acting as financial advisor and Wilson Sonsini Goodrich & Rosati is acting as legal counsel to BreakingPoint.

 

Featured

  • Live From ISC West 2023: Day 1

    ISC West 2023 in Las Vegas, Nevada, has officially begun! Make sure to keep an eye on Security Today’s ISCW Live 2023 page, as well as our associated Twitter accounts—@SecurToday and @CampusSecur—for the latest updates from the show floor at the Venetian Expo. Read Now

    • Industry Events
    • ISC West
  • It Happened Again

    Just yesterday (as of this writing), it happened again. A 28-year-old woman shot her way into a Christian elementary school in Nashville, Tenn., on Monday and killed three children and three adults, according to national news. AP News reports that the victims were three 9-year-old children, a top school administrator, a substitute teacher, and a school custodian Read Now

  • Let's Get to Work

    You are standing at the conference center doors just waiting to get into the exhibit hall. I know you are because I’m standing next to you. This week at ISC West has been three years in the making. Last year was encouraging, and here we are waiting for the Big Show. Read Now

    • Industry Events
    • ISC West
  • Using Modern Technology

    Using Modern Technology

    Workplace violence is a serious and growing challenge for many organizations — including those in the healthcare industry. Read Now

Featured Cybersecurity

New Products

  • Videoloft Cloud Video Surveillance VSaaS Solution

    Videoloft Cloud Video Surveillance VSaaS Solution

    Videoloft focuses on transforming traditional professional surveillance systems into cloud connected solutions via the Videoloft Cloud Adapter. 3

  • Camden Door Controls ‘SER” Surface Boxes and Extension Rings

    Camden Door Controls ‘SER” Surface Boxes and Extension Rings

    Camden Door Controls has introduced new ‘SER” surface boxes and extension rings that provide a complete solution for new construction. In addition, they provide a simple and robust solution when replacing round wired and manual push plate switches with either Camden’s wired or wireless SureWave™ no-touch switches or Kinetic™ no-battery wireless switches. 3

  • Camden Door Controls Application Spec Guide

    Camden Door Controls Application Spec Guide

    Camden Door Controls, an industry-leading provider of innovative, high quality door activation and locking products, has published a new application spec guide for specification writers designing a wireless barrier-free restroom control system. 3