In the tech world, a $205 million acquisition is usually small change. But for NetScout Systems (NASDAQ:NTCT), with a market cap around $350 million, it's certainly a big deal. The company's deal for Network General has some strong points, but I still think see several risks involved.

NetScout develops technologies to monitor computer networks, while Network General's products  conduct deep analysis of networks to root out complicated problems.

Back in 2004, McAfee (NYSE:MFE) spun out Network General to private equity firms Silver Lake Partners and Texas Pacific Group for about $235 million. But the spinoff subsequently suffered amid fierce competition and neglect from McAfee.

It now seems to be making a turnaround, but on the conference call, Network General provided vague details on its financials. Management indicated that it's indeed generating profits, and it looks like revenue's on a roughly $118 million run rate -- a figure that still pales in comparison to the company's approximately $200 million in revenues in 2004.

NetScout and Network General collectively provide a nice offering for customers; the conference call mentions that the deal should fulfill many clients' prior requests. NetScout, which serves more than 3,000 enterprise customers such as Verizon (NYSE:VZ), AT&T (NYSE:T), and Merrill Lynch (NYSE:MER), believes that the combined revenue run rate will likely double by fiscal 2009. The combination of the two companies should provide cost savings through synergies.

These are all encouraging signs. But again, this is a huge deal for NetScout, and integrating its new purchase will demand a lot of time and resources. I'd urge Foolish investors to proceed with caution here.

Further Foolishness:

Fool contributor Tom Taulli, author of The Complete M&A Handbook, does not own shares mentioned in this article. He is currently ranked 5,691 out of more than 65,000 total participants in CAPS.