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Summary:

Given its track record, you would think that Juniper Networks would be loath to spend over half-a-billion dollars on two start-ups. Still, it shows if it wants to stay in the game, it needs to rev-up the acquisition engine, and take the likes of Cisco head […]

Given its track record, you would think that Juniper Networks would be loath to spend over half-a-billion dollars on two start-ups. Still, it shows if it wants to stay in the game, it needs to rev-up the acquisition engine, and take the likes of Cisco head on, and not just in routers. Today Juniper acquired Peribit Networks and Redline Networks for $337 million and $132 million in cash, stock and assumed stock options. It had dropped major dinero on NetScreen, in case you had forgotten, in an effort to buy its way into the security space. Now its going after application acceleration and switching markets. Not a good sign for the likes of F5, Foundry, and start-ups looking to get some traction. Some of them were thought to be on JNPR shopping list. Scott Kirens talked about his vision of “intelligent infrastructure” last year and this is continuation of that theme.

Investing Money: JNPR paid a steep price to enter this market as these companies combined revenues last year was roughly $40M. But this is where the money is being spent by enterprises large and small and this is where the next-gen enterprise networking is heading. There had been talks of JNPR acquiring FFIV- this certainly will put an end to that and make life of FFIV little tougher as Redline had already been giving hard time to FFIV.

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  1. The Newest Industry Tuesday, April 26, 2005

    Juniper: I want thei bank account

    Juniper just went nuts and made two really key purchases: Peribit Networks and Redline Networks. [here]

    Redline is one of those really cool companies that helps companies balance their load, terminate their SSL traffic and intelligently compress con…

  2. Om Malik’s Broadband Blog » Citrix buys Netscaler Wednesday, June 1, 2005

    [...] se companies have become acquisition bait. Cisco bought FineGround Networks only recently. Juniper got into the game with its Peribit/Redline acquisitions. The idea here [...]

  3. Om Malik on Broadband : » Shake Up Looms At Juniper? Tuesday, January 10, 2006

    [...] Apparently, there were rumors that something major is in the air. Nothing major, my sources tell me – it is just a plain old executive shake-up. Two senior level executives are said to be leaving the company. The announcement could come as soon as tomorrow, or later this week. One of them is a start-up guy, and is off to pursue opportunities in the start-up land. Names I have heard are Jeff Graham who was the CEO of Peribit, a company Juniper had earlier acquired. Other names I am aware of but will be keep it to myself, because I have not been able to confirm as yet. [...]

  4. Om Malik on Broadband : » For Juniper, End of The Wonder Years Monday, January 30, 2006

    [...] Recent acquisitions of Redline, Kagoor and Peribit contribued no growth during the quarter- that’s paying over $450 million for no growth (talk about dilution.) . These acquisitions have resulted in a bloated opearting structure on top of the additional heads hired for the “J-Series” platform. With all the additional operating expenses and missing revenue contribution the operating leverage has disappeared. [...]

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