NetScout buys Network General

NetScout Systems Inc. said today it has agreed to buy Network General Corp. in a combined cash, stock, and debt transaction currently valued at $205 million.

NetScout, a Westford company, sells systems that report on the performance of computer networks, and Network General is a California-based information technology company.

NetScout said the acquisition will further its vision of providing superior network-based performance management, and it added that it believes for the full fiscal year of 2009, the combined company will approximately double NetScout's current revenue rate.

Separately, NetScout raised its guidance for its second quarter, which ends Sept. 30.

Revenue is expected to be in the range of $29 million to $30 million; previous guidance was $28 million to $29 million, the company said.

Net income per diluted share is expected to be in the range of 9 to 10 cents, versus earlier guidance of 8 to 9 cents, the company said.
(By Chris Reidy, Globe staff)