JDSU has entered into a definitive agreement to acquire Network Instruments.

The acquisition of Network Instruments further strengthens JDSU as a key solutions provider to the enterprise, data center and cloud networking markets. It expands the addressable market for JDSU's Network and Service Enablement business segment by more than $1 billion in markets growing at nearly 13 percent, including the application-aware network performance management and network packet broker markets.

Network Instruments will also add a talented employee base to JDSU that includes research and development, sales, marketing and production teams with decades of experience and proven success in the enterprise market.

JDSU and Network Instruments offer complementary product portfolios. As enterprise and carrier network performance management requirements converge, driven by an ever-increasing number of connected mobile devices and the need for improved visibility into application performance, JDSU and Network Instruments are qualified to create new and differentiated solutions for both markets.

“The acquisition of Network Instruments by JDSU will provide our customers with considerable benefits,” said Douglas Smith, president, CEO and co-founder of Network Instruments. “JDSU’s commitment to product innovation and its leadership position with service providers will provide Network Instruments with a strong entry into the carrier market for performance management solutions. In turn, our robust product line and strong relationships with our enterprise channel partners will benefit JDSU as we bring our products under the JDSU brand.”

“Network Instruments has outstanding new products and an excellent reputation across the enterprise market with nearly twenty years of experience and strong customer relationships,” said David Heard, president of the Network and Service Enablement business segment at JDSU. “We’re excited to add their talented team and winning solutions to JDSU and look forward to leveraging their expertise to further improve network performance for both our telecom and enterprise customers.”

The acquisition of Network Instruments will expand JDSU’s Network and Service Enablement product portfolio with several enterprise products, including:

- Observer Monitoring Platform – Integrated performance monitoring that provides unique visibility into complex application and network operations. The Observer Platform provides deep-dive analytics and problem resolution for mission-critical applications and projects such as VoIP, cloud deployments, data center initiatives and virtualization placements.

- GigaStor Retrospective Analysis Appliance – Precision-driven data collection solution that provides time-based and retrospective network analysis to support detailed application analytics for data-intensive applications.

- Matrix Network Monitoring Switch – Launched in September, the Matrix provides an advanced, next-generation and cost-effective solution for network traffic monitoring for the Network Packet Broker market. The Matrix provides rapid set-up and administration, centralized traffic policy management and the scalability for administrators to add more ports as their networks grow.

JDSU plans to acquire Network Instruments for $200 million in cash, subject to certain adjustments. The companies expect to close the transaction, subject to customary regulatory approvals, within approximately 45 days.