Tektronix, Inc. and Inet Technologies, Inc., have signed a definitive agreement for Tektronix to acquire Inet, a global provider of communications software solutions that enable network operators to operate their businesses. Inet's products address next-generation networks, including 2.5G and 3G mobile data and voice-over-packet (also referred to as VoIP) technologies, and traditional networks.

Inet, founded in 1989 and profitable every year since 1990, has approximately 500 employees worldwide and had 2003 sales of $104 million. When combined with Tektronix' mobile protocol test business, sales from products addressing the network monitoring and protocol test markets are expected to exceed $200 million.

Tektronix anticipates that the acquisition will accelerate the delivery of products and solutions for network operators and equipment manufacturers seeking to implement next-generation technologies such as General Packet Radio Service (GPRS), Universal Mobile Telecommunications Systems (UMTS) and VoIP. Inet will become part of Tektronix' Communications and Video business.

Tektronix will acquire all of Inet's outstanding stock for approximately $12.50 per share consisting of $6.25 per share in cash and approximately $6.25 per share in Tektronix' stock. After adjusting for Inet's $172 million cash balance as of March 31, 2004, the net purchase price is approximately $325 million. The transaction is expected to close on approximately Sept. 30, 2004.