HOD HASHARON, Israel,
February 24, 2015 /PRNewswire/ --
Allot Communications Ltd. (NASDAQ, TASE: ALLT), a leading global
provider of intelligent broadband solutions that empowers
communication service providers to optimize and monetize their
networks, enterprises to enhance productivity and consumers to
improve their digital experience, announced today that it has
signed a definitive agreement to acquire the operations of Optenet,
a global IT security company providing high-performance
Security-as-a-Service (SECaaS) solutions to service providers and
large enterprises worldwide.
Under the terms of the agreement, Allot will acquire the
operations of Optenet for approximately $6.5
million in cash to be paid upon and before closing, plus
deferred and contingent purchase price. The deferred purchase price
consists of approximately $5.5
million to be paid over two years following closing. In
addition, there will be a performance-based earn-out over a period
of five years. The earn-out is capped at approximately $26 million and is contingent upon reaching
approximately $140 million in
revenues in total over the following five years. The transaction is
expected to close during the first quarter of 2015. Allot currently
expects the acquisition to contribute a few millions of dollars to
revenues and to be marginally accretive on a non-GAAP basis during
fiscal year 2015.
"Our acquisition of Optenet will help Allot become a leading
player in the consumer Security-as-a-Service market," said
Andrei
Elefant, President & CEO of
Allot Communications. "We have been working with Optenet
since 2013 and during that time we have won more than 10 service
provider customers together, half of which are large tier one
operators. In addition to bringing value to stockholders, this
strategic move augments our position in the security market,
strengthens our network operator value-added services approach, and
complements our cloud and enterprise vision."
Strategic Benefits of the Acquisition
- The acquisition will significantly broaden
Allot's addressable security market potential
enabling Allot to become a leading player in the SECaaS consumer
market working with mobile operators.
- Optenet's products complement
Allot's existing security
offerings, especially in the market of DDoS protection and
anti-malware.
- The acquisition provides new
monetization opportunities for mobile service providers,
enabling them to provide value to both residential and enterprise
customers.
- The combined offerings present a
strong value proposition to Allot customers by
adding Optenet's security value-added services to the Allot Service
Gateway.
- The combined offerings allow Allot to address the rapidly
growing security market and operator demand for solutions that
protect their customers from threats.
- The acquisition is based on an
existing successful partnership that has already resulted in
ten service provider customer wins, half of which are large tier-1
mobile operators.
- Optenet's products complements
Allot's offering
to cloud operators
and large enterprises by
enhancing the security capabilities on the gateway to the
cloud.
Founded in 1997, Optenet is a pioneer and global leader of
enabling SECaaS offerings to the consumer market. Optenet's
technology currently protects more than 100 million end users
around the globe, including customers of many of the world's
leading ISPs, mobile operators, and 500K employees of global
enterprise organizations. Optenet's suite of security solution
offerings, such as parental control and anti-malware, will be added
to the Allot Service Gateway. Optenet's technology will also
enhance Allot ServiceProtector, which protects the integrity of
large-scale networks by providing a first line of defense against
DDoS and zero-day attacks.
"I'm thrilled with the opportunity this acquisition represents,"
said Francisco Martin
Abreu, CEO, Optenet. "Combining Allot's Service
Gateway with Optenet's technology creates an industry-leading
security suite of SECaaS applications and services that position
the company to take advantage of a significant market opportunity.
Our security expertise coupled with a strong operator and
enterprise customer base will enable Allot to provide value to both
Allot and Optenet customers."
About Optenet
Optenet is a global IT security company providing
high-performance security to service providers and large
enterprises worldwide. With the largest ISP customer base and over
15 years of experience, Optenet is a pioneer and global leader of
enabling SECaaS. Its technology protects more than 100 million End
Users worldwide and is deployed globally at over 60 ISPs. Dedicated
to protecting children by eliminating illegal content on the
Internet, Optenet works with government and non-profit
organizations to create a secure online environment for minors. For
more information, visit: http://www.optenet.com
About Allot Communications
Allot Communications Ltd. (NASDAQ, TASE: ALLT) empowers service
providers to monetize and optimize their networks, enterprises to
enhance productivity and consumers to enjoy an always-on digital
lifestyle. Allot's advanced DPI-based broadband solutions identify
and leverage network intelligence to analyze, protect, improve and
enrich mobile, fixed and cloud service delivery and user
experience. Allot's unique blend of innovative technology, proven
know-how and collaborative approach to industry standards and
partnerships enables network operators worldwide to elevate their
role in the digital lifestyle ecosystem and to open the door to a
wealth of new business opportunities. For more information, please
visit http://www.allot.com.
Forward Looking Statement
This release may contain forward-looking statements, which
express the current beliefs and expectations of Company management.
Such statements involve a number of known and unknown risks and
uncertainties that could cause our future results, performance or
achievements to differ significantly from the results, performance
or achievements expressed or implied by such forward-looking
statements. Important factors that could cause or contribute to
such differences include risks relating to: our ability to compete
successfully with other companies offering competing technologies;
the loss of one or more significant customers; consolidation of,
and strategic alliances by, our competitors, government regulation;
lower demand for key value-added services; our ability to keep pace
with advances in technology and to add new features and value-added
services; managing lengthy sales cycles; operational risks
associated with large projects; our dependence on third party
channel partners for a material portion of our revenues; and other
factors discussed under the heading "Risk Factors" in the Company's
annual report on Form 20-F filed with the Securities and Exchange
Commission. Forward-looking statements in this release are made
pursuant to the safe harbor provisions contained in the Private
Securities Litigation Reform Act of 1995. These forward-looking
statements are made only as of the date hereof, and the company
undertakes no obligation to update or revise the forward-looking
statements, whether as a result of new information, future events
or otherwise.
Allot Communications Contact:
Maya Lustig | Director of
Corporate Communications
+972-54-6778100| mlustig@allot.com
Rami Rozen | AVP Corporate
development
+972-52-5694441| rrozen@allot.com
SOURCE Allot Communications Ltd.