Sonus Networks to Buy Performance Technologies

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Sonus Networks  today entered into a definitive merger agreement to acquire Performance Technologies for $3.75 per share in cash, or about $30 million. The stock purchase price is almost 26% higher than Performance Technologies' closing price of $2.98 on Dec. 12, 2013.

The acquisition represents several key opportunities for Sonus, including increased diameter signaling capabilities. Diameter signaling is the industry standard for data signals on smartphones and tablets. Diameter signaling allows devices to download data, roam on networks, and access apps via a mobile wireless network. This is significant for Sonus because the technology is expected to grow by an average of 42% per year over the next three to four years. 

The acquisition would also increase the company's session initiation protocol, or SIP, capabilities. SIP is the messaging signal technology that allows smartphones and tablets to have videoconferencing capabilities and use voice over Internet protocol, or VoIP. 

Sonus said in a press release that the acquisition allows the company "to expand and diversify its portfolio with an integrated, virtualized Diameter and SIP-based solution and deliver strategic value to service providers seeking to offer new multimedia services through mobile, Cloud-based, real-time communications."

The deal could increase the company's addressable market by up to 50% by combining "unique and complementary technologies in wireless and wireline network intelligence," according to Sonus President and CEO Raymond P. Dola.

John M. Slusser, president and chief executive officer of Performance Technologies, said in the release that the deal provides a "substantial value" to his company's shareholders and that "in Sonus we find a dedicated team of kindred spirits, highly focused on driving continued growth in the next-generation network communications marketplace."

Sonus said the deal will be funded using the company's cash on hand and is expected to close in the first quarter of 2014, pending approval by Performance Technologies' stockholders. 

The article Sonus Networks to Buy Performance Technologies originally appeared on

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