Local tech. company bought for $28M

Photo: Contributed - Procera

Procera Networks, Inc. (NASDAQ: PKT), has entered into a definitive agreement to acquire Vineyard Networks Inc., a leader in the Enterprise OEM DPI market. The acquisition will enable Procera to extend its Intelligent Policy Enforcement business into the growing Enterprise DPI market.

Procera believes that network intelligence technology is foundational for networks of the future. James Brear, Procera’s President and CEO, says, “Every network element will require intelligence. Our strategic vision is to enable networks of any size to have the intelligence needed to operate effectively. 

The press information from Procera says, PacketLogic Report Studio is a leap forward in that it allows operators to easily create reports on fine-grained information about a company's Internet usage. 

Procera directly addresses this need for service providers of all types through our PacketLogic solutions. Vineyard enables Procera to expand our total addressable market through their business to include enterprise network equipment vendors, adding the entire enterprise space along with additional opportunities in the service provider OEM (Original Equipment ) 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 (Deep Packet Information) market.”

The companies are on the leading edge of allowing businesses using the Internet to truly understand the traffic on their sites, from how much bandwidth is required to deliver services to ways to improve networks for a better customer experience when using the website.

“Procera and Vineyard have natural synergies,” said Jason Richards, Vineyard’s CEO. “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.”

The growing use of Software Defined Networking, cloud services and storage, as well as the “Bring Your Own Device” (BYOD) trend for consumer and enterprise, has blurred the line between enterprise and service provider networks.

Consumer, enterprise and service provider network operators are searching for solutions that provide better visibility and control in an ever-changing landscape of applications, content owners and content-delivery networks. Existing network solutions that do not have sophisticated network intelligence cannot effectively meet the Quality of Experience expectations of broadband subscribers.

Procera believes that its combination with Vineyard will create a new force in the DPI market for Service Providers and Enterprises. The total addressable market (TAM) for the Enterprise OEM DPI market is expected to be over $300 million in 2013.

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.

Procera's headquarters are in California, it's Canadian office is in Kelowna.