Juniper acquires SDN startup Contrail in $176m cash and stock deal

Juniper acquires SDN startup Contrail in $176m cash and stock dealIn an earlier-this-week announcement, beleaguered switch and router supplier Juniper Networks revealed that it had acquired software-defined network (SDN) startup, Contrail Systems, in a $176-million in cash and stock deal which will likely close by the end of this year.

Disclosing its Contrail acquisition in an 8K filing with the Securities and Exchange Commission (SEC), Juniper said that it worked out an acquisition deal with Contrail - a startup which was founded this year by officials from Google, Juniper, Cisco, and Aruba - on December 7.

Juniper also revealed in the SEC filing that out of a total of $176 million which it will pay for Contrail's purchase, $57.5 million will be in cash; while the remaining value will be filled in by issuing 5.82 million shares of its shares.

Juniper's acquisition of Contrail - which produces controllers for software-defined networks - underscores that the startup has moved into the SDN arena; thereby joining some of the other companies, like Nicira, IBM, Hewlett-Packard, Vyatta, Pica8, and Big Switch Networks, which are foraying into SDN from diverse vectors.

With the filing also drawing attention to the fact that Juniper had made an investment in Contrail earlier this year, Juniper's Executive VP Bob Muglia said in a blog post announcing the acquisition: "As a strategic investor earlier this year, we recognized the inherent advantages of Contrail's architectural approach;" and added: "We are excited to take this next step to acquire and combine Contrail into our team."