(Source: PRNewswire)MILPITAS, Calif., July 9 /PRNewswire-FirstCall/ -- JDSU today announced that it has entered into a definitive agreement to acquire the Network Tools business of Finisar Corporation. Network Tools, which had revenue of $44.2 million in Finisar's fiscal year 2009 ending April 30, 2009, is the world's leading provider of storage area network (SAN) protocol test tools, software and services. Under the terms of the agreement, JDSU will acquire the Network Tools business for approximately $40.6 million in cash and the parties expect to close the transaction before the end of July 2009.

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The complementary acquisition, which JDSU expects to contribute positive operating income in the second quarter of fiscal year 2010, includes the following strategic benefits:

-- Expanded JDSU lab test market presence -Network Tools' customers

include the world's leading storage network system and component

manufacturers, system integrators as well as enterprises operating major

data centers. The transaction will immediately expand JDSU's

addressed market and create new growth opportunities from the combined

test expertise of JDSU and the Network Tools business.

-- Product Innovation - The combination of JDSU's communications test

development expertise in areas such 40/100G with Network Tools'

strength in storage network protocol test will fuel product innovation

addressing Fibre Channel over Ethernet and other emerging SAN test

market opportunities.

-- New Growth Opportunities - The Network Tools business will be positioned

to leverage JDSU's established global sales channels and customer

service and support organization to fuel growth of its storage network

test product line in markets worldwide.

"The Network Tools business is an excellent strategic fit with JDSU," said Dave Holly, president of JDSU's Communications Test and Measurement business segment. "The acquisition will immediately establish JDSU as the leading provider of storage network test solutions and create new opportunities to deliver innovation and enhanced services to our lab and manufacturing customers from our combined test expertise."

The Network Tools portfolio, focused on the SAN analysis and data generation and load testing segments, specializes in a wide range of storage protocols, such as Fibre Channel, Gigabit Ethernet, 10GigE, iSCSI, SAS and SATA.