Expand Networks Buys NetPrivia

Expand Networks Inc., a Roseland, N.J.-based provider of WAN compression and acceleration appliances, has agreed to acquire NetPriva Pty Ltd., an Australian developer of software-only WAN optimization solutions. No financial terms were disclosed for the deal, which is expected to close within the next few days.

 

Expand Networks has raised nearly $70 million in VC funding, from firms like America Online, Comcast Interactive Capital, DIC, Federated Kaufman Fund, Intel Capital, Omninet Capital, RBC Capital Markets, Tamir Fishman Ventures and Robeco Investment Management. 

 

PRESS RELEASE

Expand Networks, www.expand.com, a leading provider of WAN Optimization Controllers (WOCs), today announced it has entered into a definitive agreement to acquire privately held NetPriva Pty Ltd, a specialist developer of software-only WAN Optimization solutions. NetPriva's unique socket-level classification technology introduces a new dimension of traffic visibility and recognition based on socket processing inside the client operating system (OS). NetPriva's technology offers the deepest levels of Quality of Service (QoS) assurance, application control, traffic shaping and management on the market today, enabling organizations to deliver guaranteed bandwidth, prioritize applications and enhance WAN performance. The transaction should be completed within several days and is subject to customary approvals and closing conditions. 

With WAN infrastructures shifting from traditional hub-and-spoke to mesh architectures, application and data traffic profiles are changing from datacenter-to-branch connectivity to more interactive office-to-office; remote user-to-remote user communications. IT managers face the challenge of monitoring and controlling traffic flows directly between user PCs at branch offices and remote locations.

“As companies deploy advanced technologies such as IP telephony, unified communications and MPLS WANs, more and more traffic flows bypass the datacenter,” said Joe Skorupa, Research VP, Gartner, Inc. “In this environment, the ability to implement distributed QoS in this mesh of endpoints will be key.”

Solving the QoS problem for this complex environment requires a client-based solution that can control traffic at the PC socket layer and that has a distributed, adaptive-QoS mechanism to manage all connected PCs. NetPriva is the only vendor today that has a solution to overcome this challenge. With the integration of NetPriva's technology, Expand will become the first WOC vendor in the market to support these features in an integrated fashion across WOC appliances and SoftWOC clients.

The acquisition comes in the wake of Expand's recently announced investment. NetPriva brings a seasoned R&D team, mature technology, patented Intellectual Property and advanced technical innovation. The acquisition adds further impetus to Expand's pending SoftWOC client launch, which is scheduled for release in Q109. All subsequent releases will integrate and leverage the NetPriva technology, resulting in the only SoftWOC client to address the needs of the changing application traffic flow patterns being seen in today's distributed enterprise.

Ellie Barr, CEO, Expand Networks said, “The acquisition of NetPriva is further evidence of our stated growth strategy and commitment to delivering the next generation of WAN Optimization technologies in order to cement our leadership position in the market. We are pleased to welcome NetPriva, its staff, shareholders, channels, partners and customers into the Expand family and look forward to a prosperous future together.” Barr concludes, “The integration of NetPriva's technology into the Expand WOC portfolio will result in a true generational leap across the Expand portfolio of SoftWOC, WOC appliance and Virtualized WOC offerings.”

Commenting on the acquisition, Peter Vroom, co-founder and principal of NetPriva said, “Being acquired by a market leader in WAN Optimization is great testimony to our technical innovation and market vision. Expand is recognized as a true pioneer and innovator in the WAN Optimization sector and is a perfect fit for us, both technologically and culturally. We look forward to an exciting and lucrative future within the Expand fold as we integrate the two company's technologies to deliver the next generation of WAN optimization solutions.”

NetPriva's software runs on the remote user's PC and provides acceleration software that enables 100% application and user visibility, classification and control. It is granular, portable and interoperable with all types of Virtual Private Networks (VPNs), thus a compelling proposition for the enterprise with remote offices and mobile users.

“Integrating NetPriva's software-only solution with its range of market leading appliances gives Expand a strong market proposition due to its ability to address the needs of the entire WAN ecosystem, from the datacenter to the branch office to the remote user,” commented Jim Metzler, Principal, Ashton, Metzler & Associates. “Technologically, this is a great fit for them. I have personally tested the NetPriva solution and found it to be a cost-effective, easy to use management and optimization solution for branch offices, not only saving time, but reducing operation costs, while deployment was seamless and multi-user friendly. I could see exactly what was happening on my network with every application at all times.” 

About NetPriva

NetPriva is focused on wide area connectivity enhancement and WAN Optimization. While others have built application acceleration appliances and WAN Optimization devices, NetPriva is taking a new approach to this growing problem of application performance over wide area networks. With patent pending technology and unique hierarchical distributed Quality of Service implementation, NetPriva has built an all software platform fully conducive to guaranteeing and prioritizing application performance over wide area networks.  

About Expand Networks

Expand Networks is the pioneer and leader in the WAN Optimization market and is positioned by Gartner Inc. in the 'Leaders' quadrant in its Magic Quadrant for WAN Optimization Controllers, 2007[i]. Expand helps organizations simplify their IT infrastructure while delivering remote offices fast, reliable and secure access to networked applications.  This results in improved user productivity and cost-effective IT management.  Expand offers a multi-service integrated platform that ensures superior performance for any application over any network.  From its headquarters in Roseland, NJ and its global locations, Expand Networks serves more than 3,500 enterprise and public sector customers in over 100 countries including: American Express, Bacardi USA, BMW, Continental Airlines, Carr America, Colgate, Elizabeth Arden, Reed Exhibitions, Target and United States Department of Defense with over 40,000 units deployed and over 2,000 MS Terminal Services and Citrix customers.  Expand is the largest supplier of WAN Optimization products to US Government and Military agencies (greater than 6,000 units) and also has the most units deployed at a single corporate location, (4,500).