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Summary:

Desktop virtualization and cloud computing vendor Citrix Systems is expanding into the mobile infrastructure market, announcing on Thursday it plans to acquire mobile traffic optimization company Bytemobile. The companies didn’t disclose the terms of the deal, but they expect it to close in the third quarter.

Handshake

Desktop virtualization and cloud computing vendor Citrix Systems is expanding into the mobile infrastructure market, announcing on Thursday it plans to acquire mobile traffic optimization company Bytemobile. The companies didn’t disclose the terms of the deal, but they expect it to close in the third quarter.

Bytemobile has two core products: Unison and the T-Series Adaptive Traffic Management System, both of which use a combination of content caching, deep packet inspection (DPI), policy management, analytics and video and web traffic optimization technologies to shape mobile data traffic as it traverses the operator’s network.

The platforms can be used to pare down payloads bound for the mobile phone – for instance scaling video to the resolution of each device’s screen– and manage congestion over an operator’s 3G and 4G data networks. Another key feature is the ability of Unison and T-Series to prioritize certain packets over others. Carriers already use traffic prioritization to throttle customers that exceed soft data caps. But the technology could become more significant in the future if carriers decide to give their own VoIP services preferential treatment and start favoring specific content partners’ video and Web services through “toll-free” traffic agreements.

Privately held and based in Santa Clara, Calif., Bytemobile isn’t the biggest infrastructure vendor in the wireless industry – it has 300 employees – but it certainly has a lot of reach. Bytemobile equipment is in 130 carriers’ core networks, which collectively serve 2 billion subscribers in 60 countries. The firm estimates that 20 petabytes of data pass through its networks daily.

Citrix and Bytemobile already have a relationship to build on. At Mobile World Congress, Bytemobile announced it would house its T-Series management platform on Citrix’s NetScaler cloud networking platform.

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  1. Architect Partners has indicated that the purchase price was $435mm in their M&A Alert write up on the deal. http://architectpartners.com/citrix-acquires-bytemobile/

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