Brocade's Connectem Aimed to Expand Software Networking Reach

Brocade (BRCD) announced its intent to acquire Connectem as it looks to strengthen its position in the software networking and network functions virtualization (NFV) markets. The terms of the acquisition were not disclosed.

Connectem develops LTE virtual Evolved Packed Core solutions, which are used to bring virtualization techniques and software-defined networking (SDN) principles to mobile wireless networks, according to the company. Brocade believes the acquisition will help it develop new ways to address connectivity challenges for its mobile customers through development of packet core virtualization solutions.

“This acquisition strengthens Brocade’s position in the networking industry as the adoption of software-centric networking continues to accelerate,” said Lloyd Carney, CEO of Brocade, in a statement. “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.”

Once the acquisition is completed, Connectem will be folded into Brocade’s Emerging Business Group, which will be headed by Ken Cheng, the division’s chief technology officer and senior vice president. The deal is expected to close during the second quarter of Brocade’s fiscal year 2015.

“There is a step-function in scalability required to connect the billions of new devices joining the Internet of Things,” said Nishi Kant, CEO of Connectem. “As an early strategic investor in our company, Brocade recognized that a new architectural approach would be required to meet these demands.”

Brocade’s pending acquisition of Connectem is the latest in a string of recent purchases aimed at growing its market share, following news of the acquisitions of companies Vyatta and Vistapointe, according to the announcement. Last month, Brocade confirmed it would buy Riverbed’s (RVBD) SteelApp application delivery controller business, which will be integrated into its Software Business Unit.