Juniper Networks splashed out $500m on two firms Tuesday as part of its long-term strategy of overtaking Cisco as the favoured networking infrastructure supplier to telcos and big corporates. Wide Area Network optimisation technology firm Peribit Networks and application front end firm Redline Networks will set Juniper back $337m and $132m respectively. Each acquisition is subject to regulatory approvals and financed by a mixture of cash and stock.
Both deals are geared towards making IP-based applications more secure and reliable, or Application Assurance, as Juniper calls it. "WAN optimisation and application front end technologies are key elements in addressing the performance and security issues associated with an increasingly distributed and mobile enterprise," Juniper said in a statement.
Founded in early 2000, Peribit Networks develops WAN optimisation appliances. Its technology is designed to provide faster application performance, prioritised delivery and improved visibility of network and application performance. Redline Networks, also founded in early 2000, specialises in kit to boost the performance and scalability of web sites. The combined revenue of Peribit Networks and Redline Networks was approximately $40m in 2004.
Juniper has been on something of a buying spree of late, buying internet telephony start-up Kagoor Networks late last month in addition to its latest purchases. Juniper expects to take a one to two cents hit to its earnings per share in the second half of 2005 because of these three acquisitions, which it predicts will boost its earnings next year. ®