DPI Merge: Procera Acquires Vineyard Networks for $28M; Riverbed OEM Adds Enterprise Business

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Vineyard / Procera

Procera Networks announced it has "..entered into a definitive agreement to acquire Vineyard Networks Inc., a leader in the Enterprise OEM DPI market [Riverbed, Xirrus]. The acquisition will enable Procera to extend its Intelligent Policy Enforcement business into the growing Enterprise DPI market .. The total addressable market (TAM) for the Enterprise OEM DPI market is expected to be over $300 million in 2013".

James Brear, President and CEO, Procera said: “ .. 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. 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”.

"The total consideration for the acquisition is $28.0 million CAD, comprised of $15.4 million CAD in Procera common stock and $12.6 million CAD in cash. The acquisition is subject to the satisfaction of certain closing conditions, and is expected to close on or before January 15, 2013 .. Vineyard is expected to add approximately $4 million to $5 million to Procera’s 2013 revenue, with gross margin in excess of 90%"

See "Procera Networks to Acquire Vineyard Networks" - here.