Ixia (XXIA) to Acquire BreakingPoint Systems in $160M Deal; Raises Lower-End of Q2 Sales Outlook
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Price: $15.03 -0.2%
EPS Growth %: +66.7%
Financial Fact:
Income tax expense (benefit): 251K
Today's EPS Names:
ANF, DXLG, FL, More
EPS Growth %: +66.7%
Financial Fact:
Income tax expense (benefit): 251K
Today's EPS Names:
ANF, DXLG, FL, More
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Ixia (Nasdaq: XXIA), 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.
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.
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.
The Street sees revs of $88.7 million.
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.
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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.
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.
The Street sees revs of $88.7 million.
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.
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