Spirent Communications plc just inked a definitive agreement to purchase privately held, Calif.-based Mu Dynamics Inc. for $40 million in cash. The deal could close on or about April 23. 

To address the fast-growing opportunity for cloud-based applications, Mu developed what it claims is the industry’s first solution that emulates real application traffic while generating comprehensive security threats, addressing all phases of the development lifecycle. Mu recently launched Blitz.io, a cloud-based service that allows enterprise application and Website developers to test users’ quality of experience when it comes to Software as a Service (SaaS) deployments. By acquiring Mu, Spirent says it will be able to  serve the high-growth cloud-based Application Performance Management market.

The financials: Spirent expects to consolidate between $9 million and $10 million in revenue post-acquisition in 2012, with a positive return on sales. “For the first full-year post-acquisition in 2013, revenues are expected to be in the range of $17 million to $19 million operating at Spirent’s average return on sales, resulting in a positive enhancement to earnings and achieving an attractive return on investment, in line with Spirent’s objectives,” the buyer notes.

“Infrastructure security testing is critical to ensuring confidence in the use of globally deployed networks and applications,” says Spirent CEO Bill Burns. “Mu Dynamics brings additional market-leading expertise in cyber security, usability and application emulation to the Spirent solutions portfolio.”

He continues, “Combining Mu’s software-based applications and security testing capabilities with Spirent’s market-leading performance test platforms will enable us to rapidly create best-in-class security test solutions with higher performance and greater scale than any other provider. This acquisition aligns with our strategy of delivering profitable growth through expanding our capabilities in growing and emerging technology markets.”

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