January 09, 2013 - 10:31 AM
Vineyard Networks, a Kelowna technology company serving a global market, is getting down to business with a California-based corporation.
The company announced in a press release it entered into an agreement to be acquired by Procera Networks Inc. for $28 million. Of the total, $15.4 million will be in the form of Procera common stock with the remaining $12.6 million in cash.
Procera Networks, Inc., is a global intelligent policy enforcement company while the Kelowna company is known as a leader in the Enterprise original equipment manufacturer market. The acquisition will enable Procera to extend its business into the growing Enterprise Deep Packet Inspection market.
"Procera and Vineyard have natural synergies," says Vineyard's CEO Jason Richards. "Vineyard's leadership in enterprise DPI combined with Procera's industry-leading suite of PacketLogic products provides customers and partners with a single solution for intelligence, analeptics and enforcement."
The Kelowna company delivers DPI and application Intelligence technology solutions to networking and telecom vendors around the world. Procera sees this as the foundation for networks of the future.
"Every network element will require intelligence," says Procera's president and CEO, James Brear. "Our strategic vision is to enable networks of any size to have the intelligence needed to operate effectively."
A report from TechVibes.com says employees of Vineyard are expected to join Procera and maintain their positions, right here in Kelowna.
The outlook is good, according to the Procera press release. Vineyard is expected to add around $4 million to $5 million to Procera's 2013 revenue, with a gross margin in excess of 90 per cent.
News from © InfoTel News Ltd, 2013