NetScout to buy Network General for $205 million

The latest takeover of the Sniffer creator comes just 10 years after McAfee bought the business for $1.1 billion, and sold it six years later for $213 million.

NetScout Systems has announced its intention to acquire Network General for $205 million (102 million).

The deal, comprising six million shares of NetScout stock, $50 million (25 million) of cash and $100 million (50 million) of debt financing, comes after 20 years of competition between the network performance software developers.

NetScout, founded in 1984, specialise in pre-event real-time monitoring and troubleshooting technology. Network General began its operations in 1986 with the shipment of the first Sniffer network monitoring system. Since then, it has expanded its range to a full line of IT network analysis solutions.

"Today, we are bringing together two established companies with complementary technologies to form a new stronger organisation that will have the scale, technology, and mindshare to meet some of the greatest challenges associated with virtualisation, convergence, SOA and highly distributed network-centric operations," said Anil Singhal, president and chief executive of NetScout.

This purchase is the third in a line of exceedingly unsuccessful and unprofitable ownership changes for Network General, the first of which came from McAfee in 1997 for $1.1billion (550 million). The second change of ownership took place in 2003 when private equity company Silver Lake Partners paid $213million (106 million) to date the business private. It took Network General and McAfee just under six years to flounder eighty percent of the company's previous value.

NetScout hopes its $205million purchase will prove to be more profitable than those of their predecessors. In a statement released early Thursday, NetScout officials claimed that the acquisition will double revenue by 2009.

Featured Resources

How virtual desktop infrastructure enables digital transformation

Challenges and benefits of VDI

Free download

The Okta digital trust index

Exploring the human edge of trust

Free download

Optimising workload placement in your hybrid cloud

Deliver increased IT agility with the cloud

Free Download

Modernise endpoint protection and leave your legacy challenges behind

The risk of keeping your legacy endpoint security tools

Download now

Most Popular

How to move Microsoft's Windows 11 from a hard drive to an SSD
Microsoft Windows

How to move Microsoft's Windows 11 from a hard drive to an SSD

4 Jan 2022
Microsoft Exchange servers break thanks to 'Y2K22' bug
email delivery

Microsoft Exchange servers break thanks to 'Y2K22' bug

4 Jan 2022
How to boot Windows 11 in Safe Mode
Microsoft Windows

How to boot Windows 11 in Safe Mode

6 Jan 2022