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

  • Allegion, Comfort Technologies Implement Mobile Credentials at the Artisan Apartment Homes in Florida

    Artisan Apartment Homes, a luxury apartment complex in Dunedin, Florida, recently transitioned from mechanical keys to electronic locks and centralized system software with support from Allegion US, a leading provider of security solutions, technology and services, and Florida-based Comfort Technologies, which specializes in deploying multifamily access control, IoT devices and software management solutions. Read Now

  • Mall of America Deploys AI-Powered Analytics to Enhance Parking Intelligence

    Mall of America®, the largest shopping and entertainment complex in North America, announced an expansion of its ongoing partnership with Axis Communications to deploy cutting-edge car-counting video analytics across more than a dozen locations. With this expansion, Mall of America (MOA) has boosted operational efficiency, improved safety and security, and enabled more informed decision-making around employee scheduling and streamlining transportation for large events. Read Now

  • Security Industry Association Launches New “askSIA” AI Tool

    The Security Industry Association (SIA) has unveiled a brand-new SIA member benefit – askSIA, a conversational AI agent designed to help users get the most out of their SIA membership, easily access SIA resources and find the latest information on SIA’s training and courses, reports and publications, events, certification offerings and more. SIA members can easily find askSIA by visiting the SIA homepage or looking for the askSIA icon in the top left of webpages. Read Now

    • Industry Events
  • Industry Embraces Mobile Access, Biometrics and AI

    A combination of evolving workplace dynamics, technology innovation and new user expectations is changing how people enter and interact with physical spaces. Access control is at the heart of these changes. Combined with biometrics and AI, mobile access control has become increasingly crucial for deploying entry solutions that are seamless, secure and adaptive to user needs. Read Now

  • Sustainable Video Solution Delivered for Landmark City of London Office Development

    An advanced, end-to-end video solution from IDIS, with a focus on reducing waste and costs, has helped a major office development in the City of London align its security with sustainability objectives. Read Now

New Products

  • Camden CV-7600 High Security Card Readers

    Camden CV-7600 High Security Card Readers

    Camden Door Controls has relaunched its CV-7600 card readers in response to growing market demand for a more secure alternative to standard proximity credentials that can be easily cloned. CV-7600 readers support MIFARE DESFire EV1 & EV2 encryption technology credentials, making them virtually clone-proof and highly secure.

  • HD2055 Modular Barricade

    Delta Scientific’s electric HD2055 modular shallow foundation barricade is tested to ASTM M50/P1 with negative penetration from the vehicle upon impact. With a shallow foundation of only 24 inches, the HD2055 can be installed without worrying about buried power lines and other below grade obstructions. The modular make-up of the barrier also allows you to cover wider roadways by adding additional modules to the system. The HD2055 boasts an Emergency Fast Operation of 1.5 seconds giving the guard ample time to deploy under a high threat situation.

  • Connect ONE’s powerful cloud-hosted management platform provides the means to tailor lockdowns and emergency mass notifications throughout a facility – while simultaneously alerting occupants to hazards or next steps, like evacuation.

    Connect ONE®

    Connect ONE’s powerful cloud-hosted management platform provides the means to tailor lockdowns and emergency mass notifications throughout a facility – while simultaneously alerting occupants to hazards or next steps, like evacuation.