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Brocade to buy software networking specialist Vyatta.

M2 EQUITYBITES-November 6, 2012-Brocade to buy software networking specialist Vyatta(C)2012 M2 COMMUNICATIONS

6 November 2012 - US networking equipment supplier Brocade Communications System Inc (NASDAQ:BRCD) said it would take over local provider of network routing, security software and hardware appliances Vyatta Inc in an all-cash deal whose value remained undisclosed.

The purchase of the Belmont, California-based company is seen to close by the end of the year. Upon completion, the target company will be incorporated into Brocade's Software Networking Business unit.

The move adds to Brocade's strategy to invest in research and development of Ethernet and software-defined networking (SDN) computer networking technologies and is expected to open fresh opportunities in the field of data centre visualisation, public cloud, enterprise virtual private cloud and managed services, its CEO Mike Klayko said.

The acquisition will also complement the buyer's software marketing technology, which is deemed a key component of future network visualisation.

Vyatta is the creator of the industry's first and sole platform-independent network operating system, the Vyatta Network OS. The buyer now plans to make use of the technology to provide customers with the opportunity to accelerate deployment and reduce development cycles in their networks.

For Vyatta, the acquisition will translate into a broader customer base and a rounded data center and networking solutions delivery, the target's chief executive Kelly Herrell said.

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Publication:M2 EquityBites (EQB)
Date:Nov 6, 2012
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