Sonus buys NET for $42m

Network Equipment Technologies (NET) in a roughly $42 million deal intended to expand its offering of real-time communication products, Total Telecom reports.

The deal values NET at $1.35 a share, a premium of 14% to its Monday closing price.

According to CBR, NET is a provider of networking applications optimised for secure real-time communications in unified communications (UC), SIP trunking and cloud-based deployments.

The acquisition will enable Sonus to expand its enterprise market capabilities with an increased set of distributors and VARs and offers the firm a US federal government installed base.

"NET has a long history of selling to US and foreign governments, which presents a new vertical market opportunity for Sonus," Reuters quotes Sonus CE Ray Dolan as saying.

NET shares rose more than 12% to a six-month high of $1.34 on Tuesday on the Nasdaq.