Although the Cambridge-based company Zeus Technology isn’t really a startup anymore, it’s worth knowing that it was acquired today for about $140 million.
Zeus Technology was founded in 1995 and develops traffic management and load balancing software. Zeus has pioneered the development of software-based highly scaleable application delivery controllers (ADCs). The company’s virtual ADC solutions are used by over 1,500 customers worldwide, including seven of the top ten Telcos, a majority of the leading cloud-service providers, major broadcasters, and top media and e-commerce companies.
The US-based buyer, a IT performance company called riverbed, today announced the acquisition of this company Zeus Technology. Zeus will become a new business unit of Riverbed, led by Zeus’s former CEO, Jim Darragh.
Jerry Kennelly, President and CEO of Riverbed, stated: “Our goal is to have the broadest and best portfolio of performance optimization products to solve a range of customer performance problems. The acquisition of Zeus is a perfect fit with that strategy. The Zeus solutions are designed for how people want to architect their applications now—high-performance software for cloud environments.”
“The ADC market is expected to grow about four times faster than the traditional ADC market over the next 4 years,” continued Kennelly. “Zeus is well positioned within this market as customers look for ADC solutions for public and private clouds that truly integrate into their application stack.”
Under the terms of the acquisition, Riverbed will pay approximately $110 million in cash for the securities of Zeus and up to an additional $30 million in cash based on the achievement of certain bookings targets in a defined 12 month period following the closing.
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