Juniper Networks Acquires Kagoor Networks

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Juniper Networks Acquires Kagoor Networks

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.

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