In the tech world, a $205 million acquisition is usually small change. But for NetScout Systems
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
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
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.