Allot to Buy Esphion

Israel-based Allot Communications Ltd. said Thursday it has purchased the assets of Esphion Ltd., headquartered in New Zealand, for $3.5 million in cash.

Allot could dole out another $2 million if the Esphion unit meets certain targets during 2008. The deal is expected to close within the next week.

Allot makes service gateways for carriers, service providers and enterprises with broadband networks. The hardware uses deep-packet inspection technology to support parental control filtering, block security threats and collect records for real-time or offline, usage-based charging.

Esphion, meanwhile, develops network protection products. The company is known for creating technology that detects and vaporizes harmful IP traffic that would otherwise bring down a network.

Allot said it will add Esphion’s capabilities to its entire product line.

Allot shares, which trade on the Nasdaq, were down 4 cents from the previous day’s close, at $4.81. Esphion is privately held.

Allot Communications Ltd. www.allot.com
Esphion Ltd. www.esphion.com