Shares of Juniper Networks (JNPR) are down 10 cents, or half a percent, at $18.87 in late trading after the company said in a Securities & Exchange Commission filing that it has agreed to pay $176 million in cash and stock for Santa Clara, California-based Contrail Systems, including $57.5 million in cash and 5.82 million shares of Juniper stock.
Contrail, founded this year, is developing products for so-called software-defined networking, which some on the Street have hypothesized could be a threat to traditional routing and switching equipment sales by Juniper and Cisco Systems (CSCO) and other box makers. More information on the company can be found here.
Juniper said in the filing that “Juniper gains SDN technology that augments our portfolio of products and services.”
“As a strategic investor earlier this year, we recognized the inherent advantages of Contrail�s architectural approach and we are excited to take this next step to acquire and combine Contrail into our team.”
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