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InfoVista to Buy Accellent

InfoVista adds application monitoring solutions to infrastructure and end-to-end performance management capabilities

October 30, 2007

2 Min Read

PARIS and HERNDON, Va. -- InfoVista (Euronext IFV - FR0004031649), the leading service-centric performance management software vendor, today announced that it has entered into an agreement to acquire France-based privately held Accellent, whose application network monitoring solutions are used by large French and international organisations to ensure the delivery of mission-critical and revenue-generating services. The acquisition adds advanced application response and traffic monitoring to InfoVista's solutions that already include best-in-class infrastructure performance management and end-to-end application and service quality monitoring capabilities.

Reflecting the complementarities between the two companies, InfoVista management does not expect any restructuring. The Accellent team will become InfoVista employees and integrated into a newly formed Business Unit.

Purchase Price

The acquisition price, without taking into account an earn-out component payable in 2011 based on high growth objectives, was €13.5 million. This works out to an enterprise value revenue multiple of 2.6x as Accellent's expected revenue for the current fiscal year, ending in June 2008, is approximately €4 million and the Company is expected to have cash and cash equivalent of approximately €3 million as at the date of acquisition. The acquisition price takes into account Accellent's double-digit revenue growth over the past years and its 30 per cent net margin.

The acquisition, subject to customary closing conditions and regulatory approvals, is expected to be completed by November 21.

Acquisition offers additional revenue opportunities for InfoVista and will be earnings accretive InfoVista plans to exploit additional revenue opportunities and leverage potential synergies through the acquisition of Accellent with top-line synergies expected to be accretive to earnings as early as fiscal year 2008. Accellent's product offering presents a uniquely complementary fit with InfoVista.

Commenting on the deal, InfoVista's CEO and Chairman Alain Tingaud noted: "The combination of InfoVista and Accellent allows us to bring together two companies with best-of-breed technologies in complementary markets and geographies to deliver the most comprehensive performance assurance solution available today from the communication infrastructure to the end-user including the services and the application. The acquisition significantly strengthens our offering, complementing and leveraging our existing platforms, and should yield important revenue synergies."

InfoVista SA

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