Overture Networks, an Intel Capital-backed internet equipment supplier, has agreed to merge with peer Hatteras Networks.
The combined company will operate as Overture Networks.
Jeff Reedy, chief executive of Overture, said: "Our two companies have grown up together as neighbours. Having each completed record setting years, the time is right to join together and establish a dominant force in the market."
Overture raised $17.2m in April from Intel Capital, the corporate venturing unit of semiconductor company Intel, and venture capital (VC) firms QuestMark Partners, Intersouth Partners, Morgenthaler Ventures, Tenaya Capital, TDF Fund and Gray Ventures.
Hatteras previously raised $21m in June 2006 from VCs Globespan Capital Partners, Columbia Capital, ComVentures and Grotech Capital.
Separately, Intel Capital said it would invest at least $45m in India this year, matching its investments last year, according to news provider Mint. The firm expects to invest in two firms by the end of this month after it invested $45m in eight transactions in 2010, Mint added.