Core network router maker Juniper Networks Inc. has signed a “definitive agreement” to acquire session border controller company Kagoor Networks.
Juniper reports the terms of the deal are $67.5 million in cash, plus options and “certain other incentives and equity compensation.”
The acquisition is expected to close in the second quarter of 2005. According to a Juniper statement, “Kagoor generated less than $5 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.”
Juniper also merged with NetScreen Technologies, developer of network security products for IP networking, in February 2004 in a stock deal that was estimated to be worth $4 billion.
The move appears to add more security capabilities to Juniper’s main offerings: large router systems primarily for backbone networks at a time when security is a leading concern for network operators. Kagoor also brings security features that are specifically adapted for voice over IP, which is becoming an increasingly important application for IP network operators.
The combination of products will enable Juniper to sell systems that include both sophisticated general IP networking security and security features for VoIP services.
Juniper characterized the acquisition as “an additional step in Juniper Networks' strategy to bring secure and assured networking to customers.”
Session border controllers perform a variety of security functions, including authorization and access, packet inspection to prevent malformed or malicious packets to enter a network, and protection from denial-of-service types of issues.
Kagoor had been one of the smaller players in the very-competitive session border controller segment, which includes Acme Packet Inc., Jasomi Networks Inc. and Netrake Inc.
