WESTFORD, Mass. (AP) — Sonus Networks Inc., which makes Internet hardware and software, said Tuesday that it is buying communications equipment maker Network Equipment Technologies Inc. for about $41.3 million in cash.
Freemont, Calif.-based Network Equipment makes internet communications equipment for both government and private customers. Sonus said the acquisition will expand its line-up of real-time communications products.
Under the terms of the agreement, Sonus will pay $1.35 per share for the company. The offer represents a 14 percent premium over the company's Monday closing stock price.
Network Equipment shares jumped 15 cents, or 13 percent, to $1.33 per share in morning trading. They have traded in a range of 71 cents to $2.81 over the past year. Sonus Networks shares slipped a penny to $2.33 per share.
Based on Network Equipment's about 30.6 million outstanding shares, the deal is worth about $41.3 million. The companies valued the deal at about $42 million, excluding acquisition-related costs.