Communication Collaboration: Danaher Corp Ties Up With NetScout
Communication Collaboration: Danaher Corp Ties Up With NetScout
US healthcare technology conglomerate Danaher Corp is uniting its communications division with NetScout Systems Inc. The company is scaling up operations at a time when cybersecurity is on the rise, according to a Reuters report. Danaher shareholders will be now acquiring NetScout shares worth $2.6 billion. This will give them a majority stake in the firm. NetScout will have operational control, says Reuters.
NetScout CEO Anil Singhal was quoted by the media as saying that the technology prevalent through Danaher will ensure tha the firm's cybersecurity efforts jump up a notch. This technology is extremely sophisticated as the communication's unit sells cybersecurity products and tools for management of networks. NetScout is a firm which makes products for monitoring software apps on networks. The collaboration between the two companies will lead to gains for both in different spheres.
Nowadays, cybersecurity has become a very important area as there are changes in the way hackers are attacking company websites on the internet. Internet frauds are also on the rise and password security is under constant risk from sophisticated hackers who know every trick in the book and are not afraid to use it. NetScout will make massive gains in this field through its collaboration with Danaher.
Tax efficiency is also another massive gain here because the collaboration is structured on the form of a Reverse Morris Trust transaction that enables a company to sell the unit in a manner which is tax efficient, Reuters reports. Danaher will now be creating a subsidiary that is completely owned to hold the communications business and it will ensure distribution of ownership of business to the shareholders.
Danaher's communications network reported 2013 revenues of USD 836 million while NetScout recently had a market value of USD 1.72 billion and revenue of USD 396 million for the year ending March 31, as per Reuters. NetScout will continue to be under the leadership of Anil Singhal following the collaboration.
Danaher is an industrial and healthcare technology firm which has moved to specialise in many areas. Its businesses including Fluke Networks and Tektronix Communications have generated sizable revenues.
This collaboration“represents another important step, and major milestone, towards accelerating our ability to compete on a larger and more global scale in the broader IT management and Cyber Intelligence space,” NetScout Chief Executive Anil Singhal was quoted as saying in a statement.
