WAN optimisation vendor Riverbed has confirmed it has acquired the intellectual property of embattled rival Expand Networks.
San Franciscan Riverbed announced today that it has "purchased certain assets of Expand Networks, including its intellectual property, out of liquidation in Israel". Riverbed has not acquired its competitor as an entire "corporate entity", and will not be saddled with "any of Expand's liabilities, obligations or contracts".
Reports over the last few weeks have suggested that Riverbed is likely to have paid around $10m (£6.5m), and one channel source, who wished to remain anonymous, suggested that the price-tag represents a great deal for the acquirer.
"This is a bargain for Riverbed," said the source. "There is a huge existing base and Expand has good technology."
Two years ago, Riverbed was rumoured to have been prepared to pay up to $40m to acquire Expand, but the deal never came to pass. ChannelWeb understands that the WAN optimisation firm finally nailed its target after beating off stiff competition from early frontrunner Inmarsat. Radware was also in the mix to snap up Expand, if sources are to be believed.
Expand has been on the lookout for a buyer since falling out with its primary venture capital backer in October. Creditors have reportedly been left out of pocket, but the firm's channel partners have thrown their backing behind the vendor.
Today's statement from its new owner concludes: "Riverbed plans to make available for purchase new technical support offerings for Expand products, and expects to work with former Expand customers to explore promotional upgrade opportunities."
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