Brings Secure and Assured VoIP To Customers Worldwide
SUNNYVALE, CA - March 29, 2005 - Juniper Networks, Inc. (Nasdaq: JNPR) today announced it has signed a definitive agreement to acquire Kagoor Networks in a transaction valued at $67.5 million in cash, plus options and certain other incentives and equity compensation. This move is an additional step in Juniper Networks' strategy to bring secure and assured networking to customers worldwide through rich traffic processing. The combination of Juniper Networks' best-in-class secure and assured networking solutions and Kagoor's session border control (SBC) technology, delivers a powerful solution for network operators looking to cost-effectively deploy quality Voice over Internet Protocol (VoIP) and other rich media services. Session border control technology is also one of the key building blocks required for infranets.
Headquartered in San Mateo, California, with a research and development (R&D) center in Herzelia, Israel, Kagoor brings to Juniper Networks a highly skilled engineering team with deep voice expertise. In addition, the company's VoiceFlow SBC products are installed in over 100 carriers worldwide, most of which also use Juniper Networks' platforms. Kagoor also brings powerful synergies through a number of common strategic partnerships including Lucent, Siemens and NEC. Juniper Networks will leverage the acquisition to establish an Israeli R&D center which will tap into the strong engineering talent pool in Israel.
"Network operators worldwide are increasingly looking to deliver enhanced VoIP and other rich services to their enterprise and consumer customers, but they need to do this in a secure and assured fashion. SBC technology is a key element in delivering these attributes. With Kagoor, Juniper gains best-in-class SBC technology and an acknowledged center of excellence in voice," commented Kittu Kolluri, general manager, Security Products Group, Juniper Networks.
"Our joint customers and partners have already recognized the value Juniper Networks and Kagoor bring in delivering best-in-class solutions to help them differentiate their service offerings," commented Jim Dolce executive vice president, Worldwide Field Operations, Juniper Networks. "This acquisition demonstrates Juniper Networks' continued commitment to helping customers enhance their businesses through the creation of IP-based infranets that deliver the quality and assurance of private networks, with the flexibility and positive economics of public networks."
"We welcome this initiative by Juniper Networks. Session Border Control technology is a key element in delivering secure, reliable Next Generation Network solutions to our customers. We are pleased to extend our existing partnership with Juniper into this important area," commented Andreas Mueller-Schubert, president Fixed Networks Solutions, Siemens.
"We're very pleased to be joining the Juniper Networks team and are excited at the opportunity this represents for our combined customers and partners. Kagoor's voice expertise and comprehensive SBC functionality is a great complement to Juniper's networking and security expertise," commented Opher Kahane, co-founder and CEO, Kagoor Networks.
The acquisition is expected to close in the second quarter of 2005 subject to certain customary closing conditions. Kagoor generated less than $5M of revenue in 2004 and it is expected to be less than $0.01 per share dilutive to Juniper Networks in 2005 and to be accretive in 2006.
About Session Border Controllers
Session Border Controllers are an integral part of delivering security and assurance to VoIP and other rich media services. SBCs are primarily deployed at the network edge to facilitate the secure and reliable flow of real-time IP traffic across network boundaries. They enable three main functions: carrier-to-carrier peering, carrier-to-enterprise service enablement and carrier-to-consumer service enablement. SBCs are also key building blocks in the development of infranets.
An Infranet is a network that combines the reach of the Internet with the predictability of a private network. Infranets will be built individually by network operators and can be federated to create a single, global network capable of facilitating any communications application. In enabling IP infrastructures to co-operate in the delivery of voice and other real-time applications, SBC technology is an important component of infranets. More information about infranets can be found at www.infranet.org.
About Kagoor Networks
Kagoor is a leading supplier and innovator of session border control technology that ensures customers fast, expert delivery of IP communications services (voice, video, multimedia). Kagoor's award-winning VoiceFlow series of session border controllers overcomes technical roadblocks typically encountered at VoIP network borders. With leading telecom partnerships and a rapidly growing base of over 100 worldwide customers, including 14 Tier 1 carriers, Kagoor's VoiceFlow is the most popular, scalable family of session border controllers available. The company is headquartered in San Mateo, CA, with offices throughout the world.
About Juniper Networks, Inc.
Juniper Networks is the leader in enabling secure and assured communications over a single IP network. The company's purpose-built, high performance IP platforms enable customers to support many different services and applications at scale. Service providers, enterprises, governments and research and education institutions worldwide rely on Juniper Networks to deliver products for building networks that are tailored to the specific needs of their users, services and applications. Juniper Networks' portfolio of proven networking and security solutions supports the complex scale, security and performance requirements of the world's most demanding networks. Additional information can be found at www.juniper.net.
Juniper Networks, the Juniper Networks logo, NetScreen, NetScreen Technologies, the NetScreen logo, NetScreen-Global Pro, ScreenOS, and GigaScreen are registered trademarks of Juniper Networks, Inc. in the United States and other countries.
Statements in this release concerning Juniper Networks' business outlook, future financial and operating results, and overall future prospects, including but not limited to, the completion of the acquisition of Kagoor and the possible effect of the acquisition on Juniper Networks' future earnings, are forward looking statements that involve a number of uncertainties and risks. Actual results could differ materially from those anticipated in those forward-looking statements as a result of certain factors, including: general economic conditions globally or regionally; business and economic conditions in the networking industry; changes in overall technology spending; the network capacity requirements of communication service providers; increases in competition; the timing of orders and their fulfillment; availability and cost of key parts and supplies; ability to establish and maintain relationships with distributors and resellers; variations in the expected mix of products sold; changes in customer mix; customer and industry analyst perceptions of Juniper Networks and its technology, products and future prospects; delays in scheduled product availability; market acceptance of our products and services; rapid technological and market change; adoption of regulations or standards affecting our products, services or industry; the ability to successfully acquire, integrate and manage Kagoor's businesses and technologies; product defects, returns or vulnerabilities; the ability to recruit and retain key personnel; currency fluctuations; litigation; and other factors listed in our most recent report on Form 10-K filed with the Securities and Exchange Commission. All statements made in this press release are made only as of the date set forth at the beginning of this release. Juniper Networks undertakes no obligation to update the information in this release in the event facts or circumstances subsequently change after the date of this press release.