14 DAY TRIAL // Global provider of network security solutions Fortinet announced on Wednesday an agreement to purchase Meru Networks, a company offering enterprise-grade wireless products, for $44 / €40 million.
If all customary conditions are met, the acquisition is expected to come to a close in the third quarter of 2015 and, as per the terms of the agreement, Fortinet is to pay $1.63 / €1.49 for a Meru share in cash.
Founded in 2002, Meru Networks is based in Sunnyvale, California, and has over 300 employees around the world. The company reported a revenue of $90.9 / €83.4 million for 2014.
Its solutions include access points for data, voice and video applications to exchange information over a wireless network in a more performant and reliable way. Meru also provides controllers for optimization of the wireless traffic across the infrastructure client devices operating in an enterprise environment.
Security-wise, the company makes available SDN enabled Wi-Fi system software for managing both wired and wireless LANs.
Combining mobile connectivity and security
Fortinet’s decision to acquire Meru aligns with its goal to offer entry-point protection for the devices of an enterprise regardless of the way they connect to each other and to the network.
The company now focuses on better covering the security of wireless networks as the adoption of the BYOD (bring your own device) concept tends to become a standard for an increasing number of companies.
Ken Xie, founder and CEO of Fortinet, said that adding Meru’s technology to the portfolio fits the overall security vision of the company to combine “strong network security with ubiquitous connectivity.”
Consolidation of the wireless security market likely to continue in 2015
Commenting on the acquisition, Shane Buckley CEO of Xirrus, says that news about the move comes as a surprise because of Fortinet’s consolidated position as a leader in small and medium-sized enterprise security and not as an enterprise vendor.
Xirrus is a US-based company specialized in designing and selling Wi-Fi hardware and software scalable solutions for Wi-Fi network demands.
“The acquisition suggests Fortinet is looking for a deeper customer base in secure wireless and to upsell Meru customers with Fortinet gear. This move by Fortinet is another example of market consolidation in the wireless space, following other big name acquisitions like HP and Aruba Networks. Xirrus believes this consolidation will continue throughout 2015,” Buckley says.
The purchase of Meru is not expected to have an impact on Fortinet’s billings, revenue, operating margins or non-GAAP profitability for the full year 2015.