Juniper buys Peribit, Redline to boost stake in enterprise market

Juniper this week announced it has signed definitive agreements to acquire Peribit Networks, a developer of WAN optimization technology, and application front end vendor Redline Networks.

The Peribit acquisition is valued at $337 million and the Redline purchase at $132 million. Both are cash and stock transactions.

These acquisitions build on Juniper's strategy to augment its routing and security infrastructure offerings with traffic processing intelligence to provide application "acceleration" and "assurance." WAN optimization technology enables distributed enterprises to deliver LAN-quality application performance over the WAN; application front ends maximize the performance, flexibility and scalability of Web-enabled enterprise data centers and sites.

These acquisitions add up to three purchases Juniper has made in the past month to stock its traffic-processing arsenal. The firm announced plans to purchase session border controller vendor Kagoor Networks in late March.

Citing data from Gartner, Juniper CEO Scott Kriens says the application acceleration market was $1 billion in 2004 and growing.

"Application acceleration is the best kept secret in networking," he said, boasting about his company's new jewels.

The purchases also deepen Juniper's immersion into the enterprise market, which it entered a year ago through the $4 billion acquisition of VPN and firewall leader NetScreen Technologies.

Both Peribit and Redline were founded in 2000. Peribit has 900 customers, 150 of which are Fortune 1000 firms. Redline has 350 enterprise customers.

Peribit's appliances are designed to increase WAN capacity, enable faster application performance, prioritize application delivery and provide systemwide visibility of network and application performance. Redline's Application Front Ends, deployed within the boundaries of corporate data centers, are intended maximize the performance and scalability of Web-enabled enterprise data centers and public Web sites.

The combined revenue for both Peribit and Redline was approximately $40 million in 2004. The Peribit acquisition is expected to close in the third quarter. Redline is expected to close in the second quarter of 2005.

Juniper will inherit 200 new employees from the purchases and form a new internal organization called the Applications Products Group.

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Copyright © 2005 IDG Communications, Inc.