Riverstone sells XGS to HP

HP snaps up technology to boost its Procurve line-up and gears up for high performance networks to accommodate emerging security mobility and convergence applications.

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By  Simon Duddy Published  June 9, 2004

Riverstone Networks has signed an agreement to sell its XGS enterprise technology platform and the associated software licenses to the Procurve Networking Business unit of HP for $28 million. The transaction is part of Riverstone’s previously announced strategic decision to refocus on the service provider market. Under the terms of the transaction, ProCurve will obtain hardware design and software operating system technology along with all rights and interests needed to develop and manufacture products and solutions based on the XGS technology. Riverstone retains their ownership of the operating system software. Both companies will independently develop the software for their respective products moving forward. HP plans to use the technology to develop a new class of product designed to complement its Procurve Adaptive EDGE Architecture. “Enterprise customers turn to us to deliver cost-effective, highly available, high performance networks to support their emerging security, mobility and convergence applications,“ says John McHugh, vice president and general manager of HP’s Procurve Networking Business unit. “Our upcoming ProCurve EDGE Fabric will incorporate the technology acquired from Riverstone to interconnect intelligent edge devices, enhancing our Adaptive EDGE Architecture.” “This agreement is a further testament to the quality of Riverstone’s technology leadership,“ says Oscar Rodriguez, CEO, Riverstone Networks. “We are proud to see our technology being leveraged by a company with such a strong brand in the enterprise market. At the same time, we will be able to use the substantial proceeds on the sale of this asset to continue our investments in the products and features that our tier 1 carrier customers require.” The XGS technology was introduced by Riverstone in April 2003 as part of the company’s exploration of markets outside its traditional carrier customer base. The XGS platform was the industry’s first to provide true wire speed 10-gigabit performance. However, the rollout of the enterprise product line was suspended in the late summer of 2003 as a result of Riverstone’s strategic refocusing on the service provider market. The Riverstone 15008 Ethernet Edge Router announced on June 1, 2004 remains the focus of the company’s carrier Ethernet product strategy for the future.

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