Sonus Networks, Inc. (NasdaqGS:SONS) acquired Software Defined Networking Business of Treq Labs, Inc. for $79.3 million on January 2, 2015. Under the terms, Sonus Networks paid $10.1 million in cash and entered into an earn-out agreement and agreed to issue up to an aggregate of 6.6 million shares of common stock over a three year period subsequent to the closing if aggregate revenue thresholds of at least $60 million is achieved by the SDN Business during that period and up to an aggregate of an additional 11 million shares (17.6 million shares in total) if aggregate revenue thresholds of at least $150 million is achieved by the SDN Business during that period. If the initial revenue thresholds are not met, no shares will be issued. 9 key personnel of the acquired business will be retained. The transaction is not subject to regulatory approvals. The deal is expected to be neutral to Sonus' full year 2015 non-GAAP EPS outlook.

Jay E. Bothwick of Wilmer Cutler Pickering Hale and Dorr LLP acted as legal advisor to Sonus Networks, Inc. Stephen J. Doyle of TCF Law Group, PLLC and Robert G. Schwartz of Soloway Schwartz LLC acted as legal advisors to Treq Labs, Inc.

Sonus Networks, Inc. (NasdaqGS:SONS) completed the acquisition of Software Defined Networking Business from Treq Labs, Inc. on January 2, 2015.