Brocade to acquire Riverbed's SteelApp business
Line of virtual ADCs to be purchased in an all-cash deal, Brocade says
In a bid to expand its software-based product portfolio, Brocade today announced its intent to acquire Riverbed's SteelApp line of virtual application delivery controllers (ADCs).
The acquisition will be paid for in cash, Brocade said, without providing an amount. The vendor said that it hoped to close the deal by the end of its second quarter in fiscal 2015. Following this, there will be a six-month transition period, during which support and purchase orders are jointly handled by Brocade and Riverbed.
Once the acquisition is complete, the SteelApp business unit will become part of Brocade's Software Business Unit, led by Kelly Herrell, senior vice president, the vendor said.
The SteelApp product line controls traffic to and from applications and enables reliable and secure application delivery to users anywhere from the cloud or data centre.
For Brocade, the rationale behind the acquisition is easy to define - as software becomes a bigger factor in IP networking, the vendor wants to be able to offer customers more products, particularly as adoption of trends such as software-defined networking begins to accelerate.
"Brocade is the number-two data centre networking vendor worldwide; this acquisition strengthens Brocade's unique position as the adoption of software-centric networking is accelerating," said Lloyd Carney, CEO of Brocade.
"We are thrilled to add SteelApp's widely-adopted solution to our portfolio and will invest our existing ADC resources to aggressively advance the roadmap and extend it into our open Vyatta Platform offering for NFV and SDN."
For Riverbed, the sale is another move in the company's mass sell-off of non-core assets, announced after the company unveiled plans to go private last year. The vendor has already made headway in this regard; October 2014 saw it sell the SteelStore cloud storage gateway business to NetApp for $80m.
"The decision to divest the SteelApp product line reflects Riverbed's ongoing commitment to focus on businesses and opportunities that leverage our core competencies," said Jerry M. Kennelly, chairman and CEO of Riverbed Technology.
"Riverbed is focused on providing solutions that provide CIOs unparalleled visibility, optimisation, and control in the hybrid enterprise, ensuring on-premises, cloud and SaaS applications perform as needed."