December 06, 2010, 12:09 PM — Enterprise networking products and services vendor Juniper Networks (NYSE: JNPR) on Monday announced the acquisition of privately held Altor Networks for $95 million in cash.
Altor Networks is a provider of virtualization security technology for enterprises. Among its customers are Syracuse University, Virtustream (an infrastructure services firm for cloud computing), International Medical Corps, the U.S. Army Human Resources Command and Affiliated Computer Services, a subsidiary of Xerox.
The deal adds to Juniper's cloud security offerings for the enterprises and service providers. In addition to a hypervisor-based firewall -- designed to protect multiple operating systems running on a host computer -- Altor products offer intrusion detection, network monitoring and compliance reporting.
Shares of Juniper were down 29 cents, or 0.84 percent, to 34.03 in late-morning trading. Still, the company is trading near its 52-week high of $36 per share, which it hit on Nov. 12. Through Friday's close, Juniper shares are up 29 percent for the year.
In a statement announcing the deal, Mark Bauhaus, executive vice president and general manager of Service Layer Technologies for Juniper, said, "This acquisition will extend our leadership in data center and cloud security and will enable customers to deploy a consistent set of security services across their physical and virtual infrastructure, while delivering lowest total cost of ownership."
Both companies are based in Silicon Valley. Altor, founded in 2007, has been one of Juniper's numerous enterprise technology partners. In March, Juniper participated in a $10 million round of financing for Altor. Other investors included DAG Ventures, Accel Partners and Foundation capital, Altor’s founding investors.
Chris Nerney writes about the business side of technology market strategies and trends, legal issues, leadership changes, mergers, venture capital, IPOs and technology stocks. Follow him on Twitter @ChrisNerney.