Vineyard Networks Acquired by Procera for $28 Million

Network Application Visibility Layer technology is at the core of many vendor solutions

By Sean Michael Kerner | Posted Jan 11, 2013
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Network policy enforcement vendor Procera Networks this week announced the acquisition of application visibility vendor Vineyard Networks.

Procera is paying $28.0 million Canadian for Vineyard, with $15.4 million in Procera stock and $12.6 million in cash. The deal is set to officially close on January 15th.

Vineyard has taken an OEM approach to the market, providing its network application visibility to third party vendors including Riverbed, Blue Coat and Dell SonicWall. The Vineyard technology provides application intelligence that extracts attributes from a network flow that can then be used to optimize the network.

"Vineyard enables Procera to expand our total addressable market through their OEM business to include enterprise network equipment vendors, adding the entire enterprise space along with additional opportunities in the service provider OEM market," James Brear, President and CEO of Procera, said. "The addition of Vineyard, which has 34 employees mostly in engineering and product development, establishes Procera as the clear leader in the high-growth DPI market."

Vineyards core technology is its Network Application Visibility Layer (NAVL) product.

Procera's core product line is the PacketLogic portfolio which is all about providing intelligence and policy enforcement for networks.

"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, Analytics and Enforcement," Jason Richards, CEO of Vineyard, stated.

The overall market for network intelligence is a large one. According to Procera, the total addressable market could be worth as much as $300 million in 2013 for enterprise OEM DPI solutions.

Sean Michael Kerner is a senior editor at InternetNews.com, the news service of the IT Business Edge Network, the network for technology professionals Follow him on Twitter @TechJournalist.

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