Vineyard Networks is Acquired by Procera Networks
On January 7th, Kelowna-based Vineyard Networks announced that it had entered into an agreement to be acquired by Procera Networks (NASDAQ: PKT), a global intelligence enforcement company from Fremont, California. This acquisition will enable Procera to extend its Intelligent Policy Enforcement business into the growing Enterprise DPI market.
The $28M deal consists of $15.4M in Procera common stock and $12.6M in cash and will expand Procera’s services to enterprise customers, while adding up to $5M to their revenue in 2013.
“Vineyard has built the most complex software in the world,” said James Brear, Procera’s CEO. “The addition of Vineyard…establishes Procera as the clear leader in the high-growth DPI market.”
According to Jason Richards, Vineyard’s CEO, “Procera and Vineyard have natural synergies. Vineyard’s leadership in Enterprise DPI combined with Procera’s industry-leading…products provides customers and partners with a single solution for intelligence, analytics and enforcement.”
During his statement, Richards specifically mentioned the community support Vineyard has received over the years. He also thanked local angel investors and government-supported programs such as the Industrial Research Assistance Program, the Southern Interior Development Initiative Trust and the Southern Interior Innovation Fund.
“Vineyard is what I would call a community success story,” said Richards. “Belief in our vision and our ability to deliver on that vision made this all possible.”
And speaking of community, although Procera is based in Northern California, Vineyard’s 34 employees will remain in Okanagan Valley.
“This isn’t an exit of Vineyard, it’s an integration of Vineyard into Procera,” said Richards. We are very committed to the success of the integration of this acquisition for the foreseeable future.”
After meeting certain closing conditions, the deal was officially finalized on January 9, 2013.
For further details, please see the official press release.