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Allot Communications to Acquire Security-as-Service Solution Operations

Optenet’s products complement Allot’s existing security offerings, especially in the market of DDoS protection and anti-malware.

Allot Communications

Israel’s Allot Communications, a provider of intelligent broadband solutions, has signed a definitive agreement to acquire the operations of Optenet, a global IT security company providing high-performance Security-as-a-Service (SECaaS) solutions to service providers and large enterprises worldwide.

Under the terms of the agreement, Allot will acquire the operations of Optenet for approximately $6.5 million in cash to be paid upon and before closing, plus deferred and contingent purchase price. The deferred purchase price consists of approximately $5.5 million to be paid over two years following closing. In addition, there will be a performance-based earn-out over a period of five years. The earn-out is capped at approximately $26 million and is contingent upon reaching approximately $140 million in revenues in total over the following five years.

The transaction is expected to close during the first quarter of 2015. Allot currently expects the acquisition to contribute a few millions of dollars to revenues and to be marginally accretive on a non-GAAP basis during fiscal year 2015.

“Our acquisition of Optenet will help Allot become a leading player in the consumer Security-as-a-Service market, ” said Andrei Elefant, President & CEO of Allot Communications. “We have been working with Optenet since 2013 and during that time we have won more than 10 service provider customers together, half of which are large tier one operators. In addition to bringing value to stockholders, this strategic move augments our position in the security market, strengthens our network operator value-added services approach, and complements our cloud and enterprise vision.”

The company stated that the acquisition will significantly broaden Allot’s addressable security market potential enabling Allot to become a leading player in the SECaaS consumer market working with mobile operators. Optenet’s products complement Allot’s existing security offerings, especially in the market of DDoS protection and anti-malware.

The acquisition provides new monetization opportunities for mobile service providers, enabling them to provide value to both residential and enterprise customers.

Optenet’s products complements Allot’s offering to cloud operators and large enterprises by enhancing the security capabilities on the gateway to the cloud.
Optenet’s suite of security solution offerings, such as parental control and anti-malware, will be added to the Allot Service Gateway. Optenet’s technology will also enhance Allot ServiceProtector, which protects the integrity of large-scale networks by providing a first line of defense against DDoS and zero-day attacks.

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