Brocade to buy Connectem

Brocade has announced its intent to acquire Connectem, a privately-held company in the LTE virtual Evolved Packet Core (vEPC) market, in an all-cash transaction.

The acquisition of Connectem extends Brocade's leadership in software networking and virtualized network functions, by enabling service providers and enterprises to offer ubiquitous connectivity between mobile and IoT devices, data centers, as well as public and private clouds. Connectem's vEPC solutions integrate seamlessly with Brocade's software and physical networking product portfolios to deliver industry-leading New IP data center infrastructure.

"This acquisition strengthens Brocade's position in the networking industry as the adoption of software-centric networking continues to accelerate. I am very pleased to bring this technology into our portfolio as we invest strategically in New IP across NFV and SDN to provide seamless data center and cloud solutions," said Lloyd Carney, CEO, Brocade.

"There is a step-function in scalability required to connect the billions of new devices joining the Internet of Things. As an early strategic investor in our company, Brocade recognized that a new architectural approach would be required to meet these demands. Connectem's pioneering technology dramatically improves the flexibility, scalability, and total cost of ownership of mobile vEPC solutions. We are excited to realize the full extent of this vision as part of Brocade, a widely recognized leader and innovator in software networking," said Nishi Kant, CEO, Connectem.

Upon completion of the acquisition, Connectem will be included in Brocade's Emerging Business Group reporting to Ken Cheng, CTO & Senior VP of Corporate Development and Emerging Business for Brocade. The terms of the acquisition are not being disclosed, and it is expected to close in Brocade's second quarter of fiscal 2015, subject to customary closing conditions and regulations. Following the acquisition, Brocade expects its FY15 financial performance to be consistent with the non-GAAP operating margin target of 25% provided during its fiscal first quarter earnings call.