US-based networking hardware company Riverbed Technology is set to acquire Israel-based network optimisation company Expand Networks for $10m, according to Israeli financial newspaper Globes.
Founded in 1998, Expand went into receivership in mid-October after Plenus Venture Lending Fund petitioned the courts due to Expand failing to repay a 2007 loan worth $10m, in a timely fashion. Globes previously reported interest in Expand in 2009, with Riverbed prepared to pay $30m, though talks later broke down.
Among Expand’s investors are corporate venturing unit Intel Capital, which led an $8.5m investment round in August 2008, as well as Comcast Interactive Capital, which represents telecom, cable and internet corporation Comcast, and media conglomerate AOL Time Warner.
Additional backers include financial services firm Federated Investors, investment bank RBC Capital Markets, venture capital (VC) funds DFJ Tamir Fishman, Vertex Venture Capital and Ophirtech, investment consultancy firm Kentech Ventures, VC and real estate firm Omninet Capital, technology holding company Emicom, investment holding company Discount Investment Corporation and US-based equity investor the Challenge Funds. Globes reports the total raised by Expand as $100m.
Riverbed, which produces its own network optimisation system, reported revenues of $190m and a net income of $40m in the third quarter of the year leading up to the end of September.