Allot Communications (ALLT) to Acquire Ortiva Wireless; Sees Deal Accretive by End of FY12

Allot Communications Ltd. (NASDAQ: ALLT), has signed a definitive agreement to acquire Ortiva Wireless, which offers the industry's most innovative solution for proactive management of mobile video.

This transaction will enable Allot to further enhance its industry-leading Allot Service Gateway by integrating a leading-edge mobile video optimization solution into a single network intelligence platform or offering it as a standalone solution. The incorporation of Ortiva's technology within Allot Service Gateway will allow mobile service providers to effectively manage the ever-increasing volume of video traffic on their networks, which according to Allot's latest Global MobileTrends report, now represents 42% of mobile data traffic worldwide.

The terms of the acquisition were not disclosed. The acquisition is subject to the satisfaction of certain closing conditions, and is expected to close during the second quarter of 2012. On a non-GAAP basis, management currently anticipates the following:

• The acquisition will be accretive on a quarterly basis by the end of 2012;
  
  
• Ortiva will contribute between $3-5 million in revenues for the second half of 2012, with a gross margin profile similar to Allot's current level;
  
  
• Operating expenses are currently estimated at approximately $2.5 million per quarter for the second half of 2012.

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