Fixed Mobile Convergence

Network test solutions provider Ixia has signed a definitive agreement to acquire Catapult Communications (News - Alert) for $9.25 per share in cash.

The transaction is valued at approximately $105 million, or $63 million net of Catapult’s cash and investments, according to Ixia (News - Alert) officials.

Officials said that Catapult’s 3G and 4G wireless networking test solutions are an “excellent complement” to Ixia’s complete line of IP performance test systems and service verification platforms.

“Ixia and Catapult bring together complementary strengths in IP and wireless communications testing in terms of technology leadership and product portfolio,” said Dick Karp, chairman and CEO at Catapult.

Catapult’s advanced wireless test systems deliver solutions for hundreds of protocols and variants such as long term evaluation (LTE (News - Alert)), IP multimedia system (IMS), WiMAX, code division multiple access (CDMA), voice over Internet protocol (VoIP), general packet radio service (GPRS) and global system for mobile communications (GSM).

This latest acquisition is expected to provide Ixia a single source solution for testing converged multiplay IP services over wireless and wireline networks to new and existing customers—especially telecom equipment manufacturers and global service providers.

Atul Bhatnagar, president and CEO at Ixia, expects that this acquisition will position Ixia as a leading source for end-to-end IP test solutions for wireline and wireless networks.

“In addition to immediately expanding our addressable market and making us a leader in 3G and 4G wireless testing, the acquisition will help drive top and bottom line growth,” added Bhatnagar.

Karp said that by combining Ixia’s multiplay IP test capabilities with Catapult’s wireless test expertise, Ixia will be able to offer a single solution that leverages technologies, customers, and global distribution channels of both the companies’ to accelerate growth and innovation in key markets.

This acquisition is expected to be conducted by means of a tender offer for all of the outstanding shares of common stock of Catapult, followed by a second-step merger. And, the transaction is expected to be accretive to Ixia’s non-GAAP earnings as early as the fourth quarter of 2009, said Ixia.

Ixia said that Thomas Weisel Partners LLC is acting as financial advisor and Bryan Cave LLP is acting as its legal counsel.

The acquisition is expected to close in the third quarter.