Brocade to Acquire Vyatta in All Cash Transaction

Brocade is all set to acquire privately held Vyatta (News - Alert), which is focused on network virtualization, in an all-cash transaction.

Brocade expects to close the acquisition by the end of the calendar year.

"This acquisition complements our R&D investments in Ethernet fabrics and SDN, as well as our broad industry and solutions-level partnerships that enable Brocade (News - Alert) to pursue new market opportunities in data center virtualization, public cloud, enterprise virtual private cloud, and managed services," said Mike Klayko, CEO of Brocade, in a statement.

"We are now bolstering these 'build and partner' efforts with this strategic acquisition with the goal of being the innovation and thought leader in the software networking category," said Klayko.

Officials with Brocade said that the company plans to utilize Vyatta’s technology and expertise with the goal of offering its customers an end-to-end architecture built on a highly virtualized, dynamic network infrastructure. This virtualized data center infrastructure promises to make both service providers and enterprises more agile through accelerated deployment and reduced development cycles in their networks.

"There are many significant developments happening today that are redefining data center architectures and industry landscapes," said Ken Cheng, vice president of the routing, application delivery and software networking group at Brocade.

Cheng said that the Vyatta acquisition brings in considerably more software networking technology and expertise to Brocade.

“We believe software networking to be a critical component in the next phase of network virtualization as enterprises are becoming increasingly virtualized and actively moving workloads to the cloud," he said.

Following the close of the acquisition, Vyatta will be merged into a software networking business unit reporting to Ken Cheng.

Kelly Herrell, CEO of Vyatta, said that Brocade and Vyatta share the philosophy that open solutions and dynamic, agile networks are the best paths for customers to evolve their data center architectures to meet their business goals.

"I am excited about Vyatta joining forces with Brocade as we now have the opportunity to more fully deliver on our value proposition with a broader set of customers as a trusted data center and networking solutions provider," said Herrell.