Riverbed Technology has announced that it has acquired Zeus Technology that delivers high-performance software-based load balancing and traffic management solutions for virtual and cloud environments. The Zeus organization, based in Cambridge, U.K., will become a new business unit of Riverbed, led by the former CEO of Zeus, Jim Darragh. Riverbed also announced the acquisition of Aptimize Limited. The acquisitions of the two companies will form the cornerstone of Riverbed's asymmetric optimization strategy.
"Riverbed is the performance company," said Jerry Kennelly, President & CEO, Riverbed. "Our goal is to have the broadest and best portfolio of performance optimization products to solve a range of customer performance problems. The acquisition of Zeus is a perfect fit with that strategy. The Zeus solutions are designed for how people want to architect their applications now high-performance software for cloud environments."
"According to industry analysts, the virtual ADC market is expected to grow about four times faster than the traditional ADC market over the next four years," continued Kennelly. "Zeus is well positioned within this market as customers look for ADC solutions for public and private clouds that truly integrate into their application stack."
Under the terms of the acquisition, Riverbed will pay approximately $110 million in cash for the securities of Zeus and up to an additional $30 million in cash based on the achievement of certain booking targets in a defined twelve-month period following the closing. The acquisition is expected to be approximately break even to Riverbed earnings in the second half of 2011 and accretive beginning in 2012.
