Arbor Networks buys Ellacoya

Acquisition of Ellacoya Networks will allow Arbor to increase its focus on providing traffic and service management to broadband providers

Network security vendor Arbor Networks has reached an agreement to acquire Ellacoya Networks, a provider of broadband optimization products, the companies announced Thursday.

The acquisition allows Arbor to take advantage of an increased focus on traffic and service management by broadband providers, the company said. Arbor focuses on protecting service provider networks from security threats such as denial-of-service attacks, botnets and worms, while Ellacoya focuses on deep packet inspection products and services, allowing service providers to prioritize traffic on a per-subscriber and per-application basis. Service providers also use Ellacoya products to deliver digital video and other broadband services.

The companies did not disclose the terms of the deal. The privately owned Ellacoya is based in Merrimack, N.H.

The combined products and services of the two companies will open up a $750 million market in 2008, growing to $1.5 billion a year by the end of the decade, Arbor predicted.

Their combined products will allow broadband providers to detect a full range of network-based attacks, as well as measure traffic and protect their entire networks, said Arbor, based in Lexington, Mass.

"Arbor Networks will be in a unique position to deliver both broad and deep visibility to protect and manage networks worldwide," Jack Boyle, Arbor's CEO said in a statement.

Arbor networks will focus on international market expansion, revenue growth and acquiring new technologies to further expand its product line, the company said.

Copyright © 2008 IDG Communications, Inc.