Juniper Networks has announced that they are purchasing software-defined networking (SDN) company Contrail Systems for $176 million in cash and stock. The deal was made last week and it should close by the end of the year. Contrail will receive $57.5 million in cash and around 5.8 million shares of Juniper stock. Contrail received around $10 million in funding. This deal takes place around 2 weeks after Cisco Systems acquired SDN firm Cariden for $141 million.
Contrail was founded this year and the company’s CTO and multi-protocol label switching (MPLS) specialist Kireeti Kompella worked at Juniper before this acquisition took place.
So what is SDN? Software defined networking is a type of network virtualization that lets network administrators have control of a programmable central control of network traffic without needing physical access to the hardware devices.
“With this acquisition, Juniper gains SDN technology that augments our portfolio of products and services,” stated Juniper software chief Bob Muglia in a blog post. “As a strategic investor earlier this year, we recognised the inherent advantages of Contrail Systems’ architectural approach and we are excited to take this next step to acquire and combine Contrail Systems into our team.”