LineRate is a company that was founded around 10 months ago and they sold to F5 Networks for over $10 million according to sources with BusinessInsider. A comparable company called Contrail Systems was sold to Juniper for $176 million in only 2 days after officially launching. F5 and LineRate did not reveal the details of the acquisition.
According to BusinessInsider’s sources, it was one of the biggest tech acquisitions in Colorado since HP acquired LeftHand Networks for $360 million in 2008.
LineRate was founded by John Giacomoni and Manish Vachharajani during their post-graduate studies at Colorado University. The company hired CEO Steve Georgis and raised $4.75 million in a seed round of funding led by Boulder Ventures.
LineRate is a software-defined networking company that helps service providers scale their network services to support growing web traffic. LineRate’s software offered layer 7+ network services.
The acquisition was officially closed on February 11, 2013. In the press release about the acquisition, Manish Vachharajani said ?In order to reap the benefits of software defined data centers, programmable, scalable network services must be present throughout the entire network stack?up to the application layer,?
?We recognize that the SDN fabric may be good at layer 2-4, but ultimately customers care most about the applications. The LineRate team is excited to join F5 and looks forward to helping F5 accelerate development initiatives in this important market,? he added.