EXHIBIT 99.2
[NETSCOUT LOGO]
Contacts:
- ---------
Peggy Flynn/ Craig Librett/
Kristen Bala Jen Vrettas
NetScout Systems Miller Shandwick Technologies
(978) 614-4162 (617) 351-4129
(978) 614-6037 (617) 351-4181
flynnp@netscout.com clibrett@miller.shandwick.com
balak@netscout.com jvrettas@miller.shandwick.com
NETSCOUT SYSTEMS
COMPLETES ACQUISITION OF NEXTPOINT NETWORKS
- - NETSCOUT ADDS NEXTPOINT'S S3 NETWORK PERFORMANCE AND SERVICE-LEVEL MANAGEMENT
SOLUTIONS TO ITS NGENIUS E-BUSINESS PERFORMANCE MANAGEMENT SYSTEM -
WESTFORD, MASS., JULY 7, 2000 - NETSCOUT SYSTEMS, INC. (NASDAQ: NTCT),
the leader in real-time network and application performance management for
e-business, today completed the acquisition of privately held NextPoint
Networks. The transaction is valued at approximately $60 million in which
NetScout issued 2.4 million NetScout shares and $23 million in cash for all
outstanding shares and options of NextPoint. The acquisition has been accounted
for as a purchase transaction.
The acquisition of NextPoint, an award-winning developer of performance
and service level management solutions, will substantially broaden NetScout's
product portfolio. The union of the two companies' product suites will result in
a one-stop solution for enterprise, e-commerce and service providers seeking
comprehensive network performance management solutions.
"We are pleased with the initial feedback from our major customers
presented with our plans for the integrated product offering," said Anil
Singhal, chairman and CEO, NetScout Systems. "In particular, our customers are
telling us they value having both active and passive data sources and both
real-time and historical reporting in a single performance management
NETSCOUT COMPLETES ACQUISITION OF NEXTPOINT NETWORKS PAGE 2 OF 3
solution. We are also delighted with the way our companies have been working
together to create a plan for a quick and smooth integration."
NetScout's leadership in real-time network and application performance
management will be complemented by the addition of NextPoint's broad-based
performance analysis and reporting applications, synthetic software agents, and
service-level management solutions. The extended offering will benefit users by
simplifying the complexity involved in using disparate management tools,
reducing network management traffic, and minimizing the training and skills
required to manage complex e-business infrastructures. NetScout plans to
integrate NextPoint's S3-TM- product suite into its nGenius-TM- product line to
create a comprehensive network performance management system.
ABOUT NEXTPOINT NETWORKS
NextPoint Networks of Westford, Massachusetts develops and markets award-winning
application-to-network performance management software to networking
professionals. The NextPoint S3-TM- suite enables a proactive service level
management process and better performing, more cost-effective networks that
support business objectives. NextPoint customers include leading enterprises
from a cross-section of industries such as Amazon.com, MGM, Liberty Mutual,
Chiquita, Intermedia Communications and TIAA-CREF.
ABOUT NETSCOUT SYSTEMS, INC.
NetScout Systems, Inc. (NASDAQ: NTCT) is a leading provider of network and
application performance management solutions. NetScout's solutions ensure
e-business applications stay up and running at optimum performance through
real-time, system-wide visibility and actionable information for fault
isolation. NetScout's products are deployed worldwide in industries such as
e-commerce, finance, healthcare, government, manufacturing and others. NetScout
serves approximately half of the Fortune 500 and counts among its customers 3M
Corporation, AT&T, Datek Online, Bristol-Myers Squibb, Amazon.com, Webhire,
Intel Online, Fidelity Investments, Xerox and Sun Microsystems.
NetScout's unique Application Flow Management (AFM) technology collects and
presents the rich set of application and Web traffic information via NetScout's
application-aware instrumentation and reporting and analysis software.
Headquartered in Westford, Massachusetts, NetScout has approximately 250
employees and offices in North America, Europe and Asia. Further information on
the company is available on the World Wide Web at WWW.NETSCOUT.COM
NETSCOUT COMPLETES ACQUISITION OF NEXTPOINT NETWORKS PAGE 3 OF 3
Forward-looking statements in this release are made pursuant to the
safe harbor provisions of Section 21E of the Securities Exchange Act of 1934.
Investors are cautioned that statements in this press release which are not
strictly historical statements constitute forward-looking statements which
involve risks and uncertainties. Actual results could differ materially from the
forward-looking statements. Risks and uncertainties which could cause actual
results to differ include, without limitation, risks and uncertainties
associated with the company's strategic relationships with Cisco Systems and
other partners, dependence upon broad-based acceptance of the company's
Application Flow Management solutions, introduction and market acceptance of new
products and product enhancements, competitive pricing pressures, reliance on
sole source suppliers, successful expansion and management of the indirect
distribution channels, the integration of NextPoint Networks and dependence on
proprietary technology, as well as risks of downturns in economic conditions
generally and in the market for network and application performance management
solutions specifically, and risks associated with year 2000 problems affecting
the company, its partners and its customers. For a more detailed description of
the risk factors associated with the company, please refer to the company's
prospectus dated August 12, 1999, the Quarterly Report on Form 10-Q for the
quarter ended December 31, 2000, on file with the Securities and Exchange
Commission and the Annual Report on Form 10-K for the fiscal year ended March
31, 2000.
###
NetScout is a registered trademark, and the NetScout logo, nGenius, WebCast,
AppScout, and NetScout Manager Plus are trademarks of NetScout Systems, Inc.