Riverbed Boosts APM Abilities With Opnet Acquisition
Opnet Technologies, a specialist in the application performance management (APM) market, gets snapped up by Riverbed Technology for a cool $1 billion.Network performance specialist Riverbed Technology announced on Oct. 29 the acquisition of Opnet Technologies, a provider of solutions for application and network performance management, for $1 billion in cash and stock. The acquisition will enable Riverbed to extend its network performance management (NPM) business into the application performance management (APM) market, where Opnet specializes. APM represents more than 70 percent of Opnet's product sales, and has been growing more than 30 percent per year for the last four years, according to a statement from Opnet Chairman and CEO Marc Cohen. Opnet will be combined with Riverbed's Cascade business unit. The transaction is expected to be accretive to Riverbed's 2013 earnings per share on a non-generally accepted accounting principles (non-GAAP) basis, according to a Riverbed release. "The addition of Opnet establishes Riverbed as the clear leader in the high-growth and converging application and network performance management markets," Riverbed Chairman and CEO Jerry Kennelly said in a statement. "This acquisition also transforms Riverbed into a billion dollar revenue company." In August, Opnet announced that it has been positioned by IT research firm Gartner in the "leaders" quadrant of its "Magic Quadrant for Application Performance Monitoring." The research firm evaluated 14 vendors in the report, and recognized eight in the "leaders" quadrant, based on their completeness of vision and ability to execute.