Riverbed to buy Opnet in $1 billion deal

Riverbed Technology has confirmed it will buy Opnet Technologies in a deal worth $921 million (£574 million).

The acquisition will enable Riverbed, the network gear manufacturer, to expand its network performance management platform into the application performance management market.

"The addition of Opnet establishes Riverbed as the clear leader in the high-growth and converging application and network performance management markets," said Riverbed's Chairman and CEO, Jerry Kennelly. "This acquisition also transforms Riverbed into a billion dollar revenue company."

Opnet is a provider of software that monitors and controls the performance of applications on networks, and has just experienced a very healthy third quarter, recording revenues of $47 million (£29 million), up from the $42 million (£26 million) generated during the same period last year.

"Riverbed and Opnet have natural synergies," said Marc Cohen, Opnet CEO. "Riverbed's leadership in accelerating business technology combined with Opnet's industry-leading suite of APM products provides customers with a single solution for monitoring, troubleshooting and actually fixing the application and network performance problems challenging them today."

Opnet will be incorporated into Riverbed's existing Cascade business unit, which makes products that monitor network performance.

The transaction is expected to go through before the end of the year.