NetScout Announces Intent to Acquire Psytechnics

NetScout® Systems, Inc. today announced the signing of a definitive agreement to acquire privately held Psytechnics, Inc., a leading provider of performance management technology that enables organizations to proactively assure the user experience for unified communications services. Based in Ipswich, United Kingdom, and Portsmouth, New Hampshire, Psytechnics’ technology will further strengthen NetScout’s Unified Service Delivery Management strategy by providing more comprehensive management of the quality of IP Voice, Video and Telepresence service delivery along with all other application and data services.

"Addressing the quality and reliability of Voice, Video and Telepresence services continues to be a top concern for IT organizations. To proactively manage these services, the IT organization needs application-specific details as well as IP transmission characteristics for voice and video traffic to understand what impacts user service quality and address performance issues," said Anil Singhal, president and CEO of NetScout. "With the acquisition of Psytechnics, NetScout will gain critical technology and expertise that will help us continue to build on our foundation strategy of Packet-Flow intelligence and accelerate our innovation to address our customers’ growing Unified Communications footprint.”

With an installed base managing over one million IP Telephony users in the US and Europe, Psytechnics’ Experience Manager software delivers trusted and granular real-time visibility into user Quality of Experience (QoE) for collaborative Unified Communications services in a simplified and actionable manner. The technology supports a broad compliment of Unified Communications services, covering multiple technologies, supporting multiple vendors, and a wide range of communications media and access devices, enabling the IT organization to precisely assure user experience and manage voice, video and Telepresence service delivery end-to-end.

In addition to providing NetScout with advanced Unified Communications assurance technology and a large patent portfolio, the acquisition of Psytechnics will bring a team of industry-leading engineers to the company. Upon the close of the acquisition, the Psytechnics team will be integrated into NetScout’s ongoing operations. Psytechnics has been backed by leading institutional investors DFJ Esprit, Gimv and New Venture Partners. Financial terms of the transaction are undisclosed. The acquisition is subject to various standard closing conditions and is expected to be completed early in the first quarter of fiscal year 2012. The acquisition is expected to be slightly accretive for the full fiscal year 2012 on a non-GAAP basis. It is anticipated to be dilutive for the fiscal year 2012 on a GAAP basis subject to the finalization of the accounting for business combinations.