Virtualisation software producer VMWare has agreed to acquire VeloCloud Networks, a US-based networking technology provider backed by networking equipment maker Cisco and telecommunications firm Telstra, for an undisclosed sum.
VeloCloud provides cloud-delivered software-defined wide area network (SD-WAN) technology that enables organisations to build and maintain networks of computers located significant distances from each other.
The company had raised $84m in funding, $27m of which came in a January 2016 series C round co-led by Cisco’s corporate venture capital vehicle, Cisco Investments, and which included VMWare, two people with knowledge of the matter told The Information.
March Capital Partners and an undisclosed third investor co-led the series C round, while Venrock and New Enterprise Associates (NEA) also invested.
Hermes Growth Partners subsequently led VeloCloud’s $35m series D round in March 2017, investing alongside Cisco Investments, Telstra’s CVC subsidiary, Telstra Ventures, NEA, Venrock, March Capital and Malaysian sovereign wealth fund Khazanah Nasional.
Sanjay Uppal, co-founder and CEO of VeloCloud, said: “We believe that by teaming up with VMware – a company also known for continually reimagining infrastructure as software – we will not only continue our mission of reinventing networking but we will do so on a much broader scale.”