Juniper Networks to Acquire Kagoor

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Juniper Networks to Acquire Kagoor

Just got word of this latest acquisition in the VoIP space (release below). Keep an eye on the SBC market to see what happens next...

Juniper Networks, Inc. to Acquire Kagoor Networks

Brings Secure and Assured VoIP To Customers Worldwide

SUNNYVALE, CA - March 29, 2005 - Juniper Networks, Inc. (Nasdaq: JNPR) today announced it has signed a definitive agreement to acquire Kagoor Networks in a transaction valued at $67.5 million in cash, plus options and certain other incentives and equity compensation. This move is an additional step in Juniper Networks' strategy to bring secure and assured networking to customers worldwide through rich traffic processing. The combination of Juniper Networks' best-in-class secure and assured networking solutions and Kagoor's session border control (SBC) technology, delivers a powerful solution for network operators looking to cost-effectively deploy quality Voice over Internet Protocol (VoIP) and other rich media services. Session border control technology is also one of the key building blocks required for infranets.

Headquartered in San Mateo, California, with a research and development

(R&D) center in Herzelia, Israel, Kagoor brings to Juniper Networks a highly skilled engineering team with deep voice expertise. In addition, the company's VoiceFlow SBC products are installed in over 100 carriers worldwide, most of which also use Juniper Networks' platforms. Kagoor also brings powerful synergies through a number of common strategic partnerships including Lucent, Siemens and NEC. Juniper Networks will leverage the acquisition to establish an Israeli R&D center which will tap into the strong engineering talent pool in Israel.

"Network operators worldwide are increasingly looking to deliver enhanced VoIP and other rich services to their enterprise and consumer customers, but they need to do this in a secure and assured fashion. SBC technology is a key element in delivering these attributes. With Kagoor, Juniper gains best-in-class SBC technology and an acknowledged center of excellence in voice," commented Kittu Kolluri, general manager, Security Products Group, Juniper Networks.

"Our joint customers and partners have already recognized the value Juniper Networks and Kagoor bring in delivering best-in-class solutions to help them differentiate their service offerings," commented Jim Dolce executive vice president, Worldwide Field Operations, Juniper Networks. "This acquisition demonstrates Juniper Networks' continued commitment to helping customers enhance their businesses through the creation of IP-based infranets that deliver the quality and assurance of private networks, with the flexibility and positive economics of public networks."

"We welcome this initiative by Juniper Networks. Session Border Control technology is a key element in delivering secure, reliable Next Generation Network solutions to our customers. We are pleased to extend our existing partnership with Juniper into this important area," commented Andreas Mueller-Schubert, president Fixed Networks Solutions, Siemens.

"We're very pleased to be joining the Juniper Networks team and are excited at the opportunity this represents for our combined customers and partners.

Kagoor's voice expertise and comprehensive SBC functionality is a great complement to Juniper's networking and security expertise," commented Opher Kahane, co-founder and CEO, Kagoor Networks.

The acquisition is expected to close in the second quarter of 2005 subject to certain customary closing conditions. Kagoor generated less than $5M of revenue in 2004 and it is expected to be less than $0.01 per share dilutive to Juniper Networks in 2005 and to be accretive in 2006.

About Session Border Controllers

Session Border Controllers are an integral part of delivering security and assurance to VoIP and other rich media services. SBCs are primarily deployed at the network edge to facilitate the secure and reliable flow of real-time IP traffic across network boundaries. They enable three main

functions: carrier-to-carrier peering, carrier-to-enterprise service enablement and carrier-to-consumer service enablement. SBCs are also key building blocks in the development of infranets.

About Infranets

An Infranet is a network that combines the reach of the Internet with the predictability of a private network. Infranets will be built individually by network operators and can be federated to create a single, global network capable of facilitating any communications application. In enabling IP infrastructures to co-operate in the delivery of voice and other real-time applications, SBC technology is an important component of infranets. More information about infranets can be found at

About Kagoor Networks

Kagoor is a leading supplier and innovator of session border control technology that ensures customers fast, expert delivery of IP communications services (voice, video, multimedia). Kagoor's award-winning VoiceFlow series of session border controllers overcomes technical roadblocks typically encountered at VoIP network borders. With leading telecom partnerships and a rapidly growing base of over 100 worldwide customers, including 14 Tier 1 carriers, Kagoor's VoiceFlow is the most popular, scalable family of session border controllers available. The company is headquartered in San Mateo, CA, with offices throughout the world. More information is available at

About Juniper Networks, Inc.

Juniper Networks is the leader in enabling secure and assured communications over a single IP network. The company's purpose-built, high performance IP platforms enable customers to support many different services and applications at scale. Service providers, enterprises, governments and research and education institutions worldwide rely on Juniper Networks to deliver products for building networks that are tailored to the specific needs of their users, services and applications.

Juniper Networks' portfolio of proven networking and security solutions supports the complex scale, security and performance requirements of the world's most demanding networks. Additional information can be found at

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