Sonus Networks, Inc. acquired Software Defined Networking Business from Treq Labs, Inc. for $79.3 million.
January 08, 2015 at 04:00 am
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Sonus Networks, Inc. (NasdaqGS:SONS) acquired Software Defined Networking Business of Treq Labs, Inc. for $79.3 million on January 2, 2015. Under the terms, Sonus Networks paid $10.1 million in cash and entered into an earn-out agreement and agreed to issue up to an aggregate of 6.6 million shares of common stock over a three year period subsequent to the closing if aggregate revenue thresholds of at least $60 million is achieved by the SDN Business during that period and up to an aggregate of an additional 11 million shares (17.6 million shares in total) if aggregate revenue thresholds of at least $150 million is achieved by the SDN Business during that period. If the initial revenue thresholds are not met, no shares will be issued. 9 key personnel of the acquired business will be retained. The transaction is not subject to regulatory approvals. The deal is expected to be neutral to Sonus' full year 2015 non-GAAP EPS outlook.
Jay E. Bothwick of Wilmer Cutler Pickering Hale and Dorr LLP acted as legal advisor to Sonus Networks, Inc. Stephen J. Doyle of TCF Law Group, PLLC and Robert G. Schwartz of Soloway Schwartz LLC acted as legal advisors to Treq Labs, Inc.
Sonus Networks, Inc. (NasdaqGS:SONS) completed the acquisition of Software Defined Networking Business from Treq Labs, Inc. on January 2, 2015.
Ribbon Communications, Inc. is a provider of communications technology to service providers and enterprises. The Company provides a range of software and high-performance hardware products, network solutions, and services that enable the secure delivery of data and voice communications, and high-bandwidth networking and connectivity. The Company operates through two segments. The Cloud and Edge segment provides secure and reliable software and hardware products, solutions and services for Voice over Internet Protocol communications, Voice over Long-Term Evolution and Voice Over G communications and Unified Communications and Collaboration within service providers and enterprises. The IP Optical Networks segment provides high-performance, secure solutions for IP networking and optical transport, supporting wireless networks, including G, metro and edge aggregation, core networking, data center interconnect, legacy network transformation and transport solutions for wholesale carriers.