InfoVista Announces Acquisition of Accellent

Regulatory News: InfoVista (Euronext IFV - FR0004031649), the leading service-centric performance management software vendor, today announced that it has entered into an agreement to acquire France-based privately held Accellent, whose application network monitoring solutions are used by large French and international organizations to ensure the delivery of mission-critical and revenue-generating services. The acquisition adds advanced application response and traffic monitoring to InfoVista’s solutions that already include best-in-class infrastructure performance management and end-to-end application and service quality monitoring capabilities. Reflecting the complementarities between the two companies, InfoVista management does not expect any restructuring. The Accellent team will become InfoVista employees and integrated into a newly formed Business Unit. Purchase Price The acquisition price, without taking into account an earn-out component payable in 2011 based on high growth objectives, was €13.5 million. This works out to an enterprise value revenue multiple of 2.6x as Accellent’s expected revenue for the current fiscal year, ending in June 2008, is approximately €4 million and the Company is expected to have cash and cash equivalent of approximately €3 million as at the date of acquisition. The acquisition price takes into account Accellent’s double-digit revenue growth over the past years and its 30% net margin. The acquisition, subject to customary closing conditions and regulatory approvals, is expected to be completed by November 21. Acquisition offers additional revenue opportunities for InfoVista and will be earnings accretive InfoVista plans to exploit additional revenue opportunities and leverage potential synergies through the acquisition of Accellent with top-line synergies expected to be accretive to earnings as early as fiscal year 2008. Accellent’s product offering presents a uniquely complementary fit with InfoVista. Commenting on the deal, InfoVista’s CEO and Chairman Alain Tingaud noted: "The combination of InfoVista and Accellent allows us to bring together two companies with best-of-breed technologies in complementary markets and geographies to deliver the most comprehensive performance assurance solution available today from the communication infrastructure to the end-user including the services and the application. The acquisition significantly strengthens our offering, complementing and leveraging our existing platforms, and should yield important revenue synergies.” Eric Fries, CEO, Accellent stated "By joining forces with InfoVista we now have the global reach to bring our capabilities to the largest organizations worldwide and more effectively penetrate the service provider market. We’re excited about becoming part of a team that shares our emphasis on technology leadership and a deep understanding of what customers need to successfully leverage business-critical applications.” Additional Information and Note to Editors: Enhanced application performance management through the combination of InfoVista and Accellent Accellent’s 5View family of products supports collection of application usage and traffic data using NetFlow and highly granular application monitoring using Deep Packet Inspection (DPI) mechanisms. Additionally, Accellent’s powerful ability to store, manipulate and analyze current and historical data complements InfoVista’s extensive reporting capabilities. When mapped to InfoVista’s performance data, network managers receive unprecedented visibility and control to tune their infrastructure to deliver specific application-based Service Level Agreements (SLAs). In addition, Accellent’s solutions will allow InfoVista to extend its solutions for end-to-end monitoring of voice video and TV on IP. InfoVista will therefore be a key player in the monitoring and management of next generation Triple Play services. Accellent solutions will continue to be available as standalone products. Initial integration to the VistaInsight® family of products will be available in the next quarter and more comprehensive integration through VistaFoundation®, InfoVista’s underlying technology platform, by mid-2008. Enabling Superior Performance Management According to the market research firm, Yankee Group, application performance management is one of the top five issues driving global network management strategy. More than 70% of network managers actively spend time troubleshooting application performance. But understanding application performance from an end-user experience and usage perspective is difficult. By combining application-centric network monitoring with InfoVista’s industry-leading infrastructure performance management solutions, enterprise customers and service providers will be able to actively troubleshoot application performance issues at the network or end user level. About InfoVista InfoVista is the Service-Centric Performance Management Software Company that assures the optimal delivery of business-critical IT services. Driven by a uniquely adaptive and real-time technology foundation, InfoVista solutions improve business effectiveness, reduce operating risk, lower cost of operations, increase agility and create competitive advantage. Eighty percent of the world's largest service providers as ranked by Fortune®, as well as leading Global 2000 enterprises, rely on InfoVista to enhance the business value of their technology assets. Representative customers include Bell Canada, Bharti, BNP Paribas, British Telecom, Cable & Wireless, Colt, Defense Information Systems Agency (DISA), Deloitte & Touche, Deutsche Telekom, France Telecom, Natixis, Savvis Corporation, SingTel, T-Mobile, Telefonica, Telstra and Voca. A Software Magazine 500 company, InfoVista stock is traded on the Eurolist by Euronext (FR0004031649). For more information about the company, please visit www.infovista.com. About Accellent Accellent is a French company with offices in Paris. Founded in 2002, it is a pioneer in expert on demand flow analysis as well as application procedures and, within a short period of time, it has become the European leader in the field. It develops and markets application and network management services that provide companies and telecommunication operators with decision support data about operations for IT services, applications and infrastructures. The company and its partners market 5View products throughout the world, and provide consulting services for operations and a complete range of management services for information flow analysis. Cautionary Statement for Purposes of the "Safe Harbor" Provisions of the Private Securities Litigation Reform Act of 1995: Except for historical information contained herein, the matters discussed in this news release are "forward looking statements." These statements involve risks and uncertainties which could cause actual results to differ materially from those in such forward-looking statements; including, without limitation, risks and uncertainties arising from the rapid evolution of our markets, competition, market acceptance of our products, our dependence upon spending by the telecommunications industry and our ability to develop and protect new technologies. For a description of other factors which might affect our actual results, please see the "Risk Factors" section and other disclosures in InfoVista's public filings with the French Autorité des Marchés Financiers. Readers of this news release are cautioned not to put undue reliance on any forward-looking statement. The Company undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. InfoVista is a registered trademark of InfoVista, S.A. Accellent and 5View are registered trademarks of Accellent SAS. All other brand names mentioned are registered trademarks of their respective owners.