VMware, Inc. (NYSE: VMW), a Silicon Valley-based provider of virtualization and cloud infrastructure solutions, has agreed to acquire Nicira, Inc., a developer of software-defined networking (SDN) and a leader in network virtualization for open source initiatives.
The transaction, which is subject to regulatory approvals and other customary closing conditions. amounts to approximately $1.05bn in cash plus approximately $210m of assumed unvested equity awards.
Led by CEO Steve Mullaney and co-founder and CTO Martin Casado, Nicira has developed software-defined networking, which enables the dynamic creation of virtual network infrastructure and services that are completely decoupled and independent from the physical network hardware.
Among others, AT&T, DreamHost, eBay, Fidelity Investments, NTT and Rackspace are using the Nicira Network Virtualization Platform (NVP) to accelerate service delivery.
The acquisition aims to expand VMware’s networking portfolio, which includes the VMware vSphere® virtual switching, VMware vCloud® Director™ networking, vShield™ Network and Security software defined services, and the VXLAN protocol to provide a full suite of software-defined networking capabilities and a comprehensive solution lineup for virtualizing the network — from virtual switching to virtualized layer 3-7 services.
Led by CEO Paul Maritz, VMware provides virtualization and cloud infrastructure solutions that enable businesses to transform the way they build, deliver and consume Information Technology resources based on their specific needs. The company, which has offices throughout the world, has more than 350,000 customers and 50,000 partners.