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January 21, 2009

Riverbed to Acquire Mazu Networks

By Jai C.S.
TMCnet Contributor

Riverbed Technology, a company specializing in wide-area data services (WDS) announced that it has firmed up its decision to acquire Cambridge based Mazu Networks; a privately-owned company that helps organizations to manage, secure and optimize the availability and performance of global applications.
"The market for WAN optimization is fast becoming more mainstream and increasingly our enterprise and service provider customers are demanding more visibility, reporting and analytics capabilities from us as they seek to deploy more robust infrastructure for managing their global applications," said Jerry M. Kennelly, president and chief executive officer at Riverbed (News - Alert).
According to Kennelly, this requirement is driven by the enterprise's need to reduce costs via consolidation, improve end-user productivity, and leverage technology to streamline business processes.
Wide-area data services allow IT departments to improve and accelerate application performance across the wide-area network (WAN). Riverbed Technology has been offering WDS that is a comprehensive solution to application performance problems. The acquisition of Mazu (News - Alert) Networks will allow Riverbed to meet enterprise and service provider customer demands by expanding its suite of WAN optimization products to include global application performance, reporting and analytics.
Mazu Networks specializes in analysis and reporting software that provides a holistic, real-time view of application usage and performance. Mazu Profiler helps IT companies to ensure optimal performance and availability, enhanced protection and support for regulatory compliance, and informed decision making for IT initiatives.
Behavioral analytics, user identification and application fingerprinting, role-based presentation using common data, and intelligent operation with other systems in the infrastructure are some of the key benefits of Mazu Profiler.
The company’s acquisition will provide customers with a closed-loop system for managing enterprise-wide applications by intelligently monitoring and analyzing performance, demonstrating the need for return on investment (ROI) of optimization, and allowing users to continuously manage performance targets to predetermined objectives.
"Our service provider customers require an integrated system to monitor and deliver a managed WAN optimization service," said Kennelly.
"By providing an integrated solution based on Mazu's market-leading offerings, we are able to tailor the reporting to demonstrate the value of optimization, which in turn supports the value of the provider's service to its customers," added Kennelly.
As per the terms of the agreement, Riverbed will pay approximately $25 million in cash at closing, with an additional possible payment of up to $22 million in cash to be paid subsequent to closing based on future sales performance. The closing of the acquisition is subject to customary closing conditions and approval of Mazu's stockholders.
The companies expect the to close this deal before the end of the first quarter of 2009.

Jai C.S. is a contributing editor for TMCnet. To read more of Jai's articles, please visit his columnist page.

Edited by Jessica Kostek

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