The acquisition of BreakingPoint
enables Ixia to provide an end-to-end solution that monitors, tests, and
optimizes converged networks. Without an ongoing security and
performance-testing regimen, even the most sophisticated networks and data
centers fail to ensure business continuity in the face of crippling cyber
attacks and dynamic application conditions.
BreakingPoint’s solutions provide
global visibility into emerging threats and applications, along with advance
insight into the resiliency of an organization’s IT infrastructure under
operationally relevant conditions and malicious attacks. BreakingPoint’s
network processor-based simulation and testing platform creates global
application and live attack traffic at Internet-scale. Enterprises, service providers,
and government agencies worldwide depend on BreakingPoint’s products to
battle-test wired and wireless infrastructures, deploy compact cyber ranges,
optimize network and data center systems, and transform security processes to
be proactive and effective.
“The current threat landscape is
changing everything –from the way we conduct business, to how we protect data
and secure infrastructures, to the ways we train cyber warriors,” said Vic
Alston, Ixia’s president and chief executive officer. “This dynamic IT
landscape is creating a growing demand for solutions that provide definitive
and current insight into the resiliency of critical IT infrastructures and
defenses. The use of disparate testing tools, threat intelligence, and
monitoring products allows dangerous security vulnerabilities that erode the
security posture of businesses and government agencies. By leveraging
BreakingPoint with Ixia’s integrated portfolio of proven network test products,
customers will have available to them an end-to-end solution to help ensure
business continuity for enterprises and government organizations.”
BreakingPoint grew revenue over 40
percent in calendar 2011 to $33.5 million while generating gross margin of 87
percent for the year. For calendar 2012, Ixia expects BreakingPoint’s revenue
to again grow by more than 40 percent, and anticipates that the BreakingPoint
transaction will be accretive to non-GAAP earnings in the first full quarter of
operations after the acquisition closes. Non-GAAP earnings exclude stock-based
compensation, amortization of acquired intangible assets, and other
non-recurring charges, net of the applicable tax effects.
“As a leader in cyber security
research, BreakingPoint has built a library of more than 34,000 attacks,
exploits, malware, and more,” said Dennis Cox, co-founder and Chief Technology
Officer of BreakingPoint. “Joining forces with Ixia creates a powerful platform
in security and application testing – one with an extensive global sales reach
into enterprises, service providers, and government agencies.”
Ixia also updated its revenue guidance
for the second quarter of 2012 to a range of $87 million to $89 million for its
core business. This compares to the previously stated guidance of $86 million
to $89 million. In addition to this amount, Ixia expects its recent Anue
Systems, Inc. acquisition to add approximately $3 million to $4 million in
additional revenue in the second quarter for the period from the June 1, 2012
acquisition closing date to June 30, 2012.
Stifel Nicolaus Weisel is acting as
financial advisor and Bryan Cave LLP is acting as legal counsel to Ixia. AGC
Partners is acting as financial advisor and Wilson Sonsini Goodrich &
Rosati is acting as legal counsel to BreakingPoint.
About Ixia
Ixia provides
the industry’s most comprehensive converged IP network validation and network
visibility solutions. Equipment manufacturers,service providers, enterprises, and government agencies use Ixia’s
solutions to design, verify, and monitor a broad range of wired, Wi-Fi, and3G/LTE equipment and networks. Ixia’s
test solutions emulate realistic media-rich traffic and network
conditions so that customers can optimize and validate the design, performance,
and security of their pre-deployment
networks. Ixia’s intelligent network visibility platforms provide
clarity into physical and virtual production networks for improved performance, security, resiliency, and application delivery of cloud, data center, and service provider networks. For more
information, visit www.ixiacom.com.
About BreakingPoint Systems
BreakingPoint Actionable Security
Intelligence (ASI) protects enterprises, service providers and government
agencies by providing global visibility into emerging threats and actionable
insight to harden and maintain resilient defenses. With the exclusive ability
to capture and control global threat intelligence at Internet scale,
BreakingPoint delivers the only products capable of battle-testing IT
infrastructures, training cyber warriors, tuning systems and policies, and
transforming security processes to be proactive and effective. BreakingPoint
bridges the gap between IT testing, monitoring and operations, delivering
advance insight to harden highly dynamic converged and mobile networks,
virtualized data centers and applications.