Storage vendor Emulex is set to acquire performance management firm Endace for $130m (£81m), signalling its entrance into the network performance management space.
New Zealand-headquartered Endace provides network visibility infrastructure and has a UK base in Reading, as well as various offices across the US.
Emulex estimates that the deal will bring new market opportunity worth £1.78bn, which it claims doubles its total addressable market to $3.2bn.
Jim McCluney, Emulex's chief executive, said the acquisition will offer the firm access to another high-growth market.
"Acquiring Endace aligns with our software-defined convergence strategy, doubles our total addressable market and places Emulex in another high-margin, high-growth market," he added.
"Excluding transaction-related expenses, we expect the acquisition to be neutral to our non-GAAP earnings per share for fiscal 2013 and accretive at the beginning of fiscal 2014."
Emulex recently claimed it was winning the fight against its rivals as it unveiled incentives to its channel partners.
Mike Riley, chief executive of Endace, claimed both sets of customers will benefit from the acquisition.
"The combined strengths of Emulex and Endace will provide our customers with industry-leading solutions to connect, monitor and manage high-performance networks in the world's most demanding datacentre environments," he said.
The transaction is expected to be completed in 2013's Q1, and is subject to closing conditions.
Contingency plans follow Carillion's demise earlier this year
Oliver Tuszik says partners can boost subscription sales by taking a customer experience-led approach
Firm says enterprise business has performed 'weaker than originally expected'
Top executives from nine VARs, including Computacenter, Bell Integration, XMA, ANS and Epaton, weigh in on which server, storage and networking technologies will be red hot next year