Ixia Offers to Buy Catapult Communications

Wireless testing systems vendor, Catapult Communications has agreed to a buy-out by fellow test systems vendor, Ixia for around US$105 million. The purchase price represents a 39% premium to the average share price over the past three months.

The board of directors of Catapult has unanimously recommended that the stockholders of Catapult accept the offer, and Richard A. Karp and Nancy Karp have entered into a support agreement to tender their shares, which represent approximately 37% of shares outstanding.

"Based on a thorough evaluation of strategic alternatives, Catapult's board of directors believes that this transaction provides both excellent value and liquidity for our shareholders," said Richard A. Karp, Chairman and CEO of Catapult Communications. "The combination of Catapult's wireless expertise with Ixia's multiplay IP capabilities will offer the market a single, powerful test solution that will benefit our customers and employees."

Catapult Communications is a supplier of digital telecom test systems to global equipment manufacturers and service providers, including Alcatel-Lucent, Motorola, NEC, NTT DoCoMo, Nortel and Nokia Siemens Networks. Ixia's test systems are used to validate the performance and reliability of complex IP networks, devices, and applications.

Posted to the site on 12th May 2009