Emulex Bids $130 Million for Endace Network Performance Management
Converged networking vendor Emulex (NYSE:ELX) is making a bid to get into the Network Performance Management space with the planned acquisition of Endace.
Emulex's offer is valued at approximately $130 million and still requires Endace shareholder approval.
Jim McCluney, CEO of Emulex, noted during a conference call to discuss the deal that there are a lot of reasons why he is interested in Endace.
"We're acquiring this company because they have solutions that provide the best visibility for detecting and resolving issues in the network, thereby helping to ensure maximum uptime for applications," McCluney said.
McCluney explained that in recent years Emulex has been steadily expanding its networking capabilities and footprint in the data center. That said, he noted that it has become increasingly complex and difficult to detect networking issues in modern networks.
"As networking speeds go to 10 Gigs and beyond, software monitoring solutions struggle to keep pace," McCluney said. "Endace solves this problem by providing a hardware based solution that provides line speed visibility into the traffic on the network at speeds of up to 100 gigs today."
In McCluney's view, together with Endace, Emulex will be able to deliver high-speed networks as well as the ability to monitor and troubleshoot those networks.
From a market perspective, the acquisition of Endace will double the addressable market size that Emulex can go after.
"We are strategically aligned to connect, monitor and manage converged networks running at speeds of up to 100 gigs with guaranteed 100 percent accuracy," McCluney said. "We will provide a simple, scalable solution with software defined capabilities."