Aruba to buy Azalea Networks for $40m

Aruba adds outdoor mesh network technology with acquisition of Azalea

Tags: Aruba NetworksAzalea Networks Inc (www.azaleanet.com/)Mergers and acquisitionsMesh network
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Aruba to buy Azalea Networks for $40m The acquisition of Azalea will give Aruba technology to connect businesses from indoor office-type locations out to outdoor industrial location, says Sheth.
By  Mark Sutton Published  May 11, 2010

Aruba Networks has announced the acquisition of outdoor mesh network provider, Azalea Networks, for approximately $40 million.

Aruba will pay $27 million in stock, and up to $13.5 million in cash to add Azalea's expertise in mesh networks for vertical sectors with outdoor, industrial operations. The deal will include Azalea's operations centre in Beijing.

Azalea's technology utilises mesh networks, where data packets hop wirelessly from radio to radio, to provide solutions tailored to industries including oil and gas, logistics, manufacturing, mining, petrochemical, public safety, smart grid, and transportation sectors.

Hitesh Sheth, COO of Aruba commented: "This acquisition brings our customers and prospects innovative new solutions for real-time outdoor applications like video surveillance. Enterprises need a secure, reliable link between their assets and the people who use them, wherever they work or roam. Outdoor networks need to cope with a wide range of environmental factors, and this challenge is compounded when video and voice need to be sent over long distances in real-time. Azalea has made outdoor mesh work in industrial enterprise applications that cut across a wide range of verticals."

Azalea has developed mesh technology to handle video and voice traffic with full fidelity over long distances. The company provided a network of 600 mesh nodes for the Beijing Olympics in 2008, enabling voice, video and wi-fi access over a 19 square mile area.

"Joining Aruba opens Azalea's unique mesh solutions to a broad new set of markets that are underserved by traditional mesh vendors," said Frank Wang, Azalea's cofounder and Co-CEO. "It also provides continuity to our existing customers, who are assured of uninterrupted support from Aruba's award-winning customer care. A tradition of innovation drives both Azalea and Aruba, and this is reflected in the highly differentiated, customer-focused products we build. All of us at Azalea are delighted to be part of Aruba."

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