Infotech Lead America: Riverbed Technology is set to buy OPNET Technologies for $1 billion.
The acquisition will enable Riverbed to extend its network performance management (NPM) business into the multi-billion dollar application performance management (APM) market. The combination of Cascade and OPNET will create a new force in the converged market for NPM and APM, with over $250 million in annualized revenue.
The addition of OPNET’s broad-based family of APM products enhances Riverbed’s already strong position in the NPM market. The resulting combination is a product line with visibility and insight into application and network performance.
This acquisition enables Riverbed to provide customers with a unique integrated solution that not only monitors network and application performance, but also accelerates it.
“The addition of OPNET establishes Riverbed as the clear leader in the high-growth and converging application and network performance management markets,” said Jerry Kennelly, chairman and CEO at Riverbed.
“Riverbed’s leadership in accelerating business technology combined with OPNET’s industry-leading suite of APM products provides customers with a single solution for monitoring, troubleshooting and actually fixing the application and network performance problems challenging them today,” said Marc Cohen, OPNET’s Chairman and CEO.
OPNET will be combined with Riverbed’s Cascade business unit. Leveraging the Riverbed brand, channels and infrastructure, Riverbed expects meaningful revenue and operating synergies in 2014.