Dallas, Texas 12/27/2013 (FINANCIALSTRENDS) – JDSU (NASDAQ: JDSU) (TSX: JDU) today announced on December 11 that it has signed off on a agreement to buy out company called Network Instruments for a full consideration of $200 million to be paid out in cash. Readers should note that Network Instruments is an provider of management solutions which help IT teams automate their network maintenance and support issues.
Commenting about the buyout and the potential to achieve synergies between the merged companies, JDS Uniphase Corp (NASDAQ:JDSU) Douglas Smith, who is the co founder, President and CEO of the firm has been quoted as saying, “The acquisition of Network Instruments by JDSU will provide our customers with considerable benefits. 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.”
On the back of this news, JDS Uniphase Corp (NASDAQ:JDSU) shares have shown a 3.07 percent in valuation in the past week and by a 6.24 percent increase in the past one month. This has off set the weakness the stock had displayed during trading over the past on year. It has posted a 4 percent dip in value in the trailing 12 months and this continued into a 10 percent dip during trading in the past 6 months.
Hence the pick in the confidence of investors in this stock would be welcomed by its current investors who would be hoping the buy out will help the firm show more earnings.