Overture Networks Inc., a Morrisville, N.C.-based maker of high-speed networking equipment, has acquired Ceterus Networks, a Richardson, Texas-based provider of metro Ethernet transport solutions. No financial terms were disclosed. Overture has raised around $45 million in VC funding, from firms like Lehman Brothers Venture Partners and Intersouth Partners. Ceterus had raised over $63 million from firms like Intel Capital, Aldus Equity, Sevin Rosen Funds and Velocity Interactive Group (fka ComVentures).
Overture Networks, the industry’s trusted Carrier Ethernet solutions provider, today announced the acquisition of Richardson, TX-based Ceterus Networks. The addition of the Ceterus product family, which includes the industry’s newest and most full-featured optical Ethernet access solutions for cell site backhaul, complements Overture’s leadership in business services solutions. The new company creates a clear market leader in multiple, high-growth Carrier Ethernet segments and provides network service providers a complete line of Carrier Ethernet edge and aggregation systems.
“Ceterus Networks has built a strong reputation for innovative and cost-effective Carrier Ethernet solutions. As an early leader in cell site backhaul, it has successfully tackled the many technical and operational nuances with which others still struggle,” said Jeff Reedy, CEO of Overture Networks. “The addition of Ceterus’ product family enables Overture Networks to offer Carrier Ethernet access aggregation solutions in both retail services and wholesale backhaul to service providers around the world.”
“The market potential for the two companies combined far exceeds what each one could accomplish on its own,” said David Stehlin, former President and CEO of Ceterus Networks and the new President of Overture Networks. “This is a unique opportunity to drive business and create additional value for both customers and shareholders.”
With purpose-built solutions for high-growth Carrier Ethernet applications, the new Overture Networks delivers many benefits for customers:
The broadest range of solutions in the industry for cell site backhaul and business service Ethernet edge applications
A best-in-class product family with MEF certifications for optical, circuit-based, fiber, pseudowire (PWE) and aggregation products
Strong success in the marketplace, demonstrated by deployed Carrier Ethernet products in 10 of the top 15 service provider networks in the United States
Superior product design and feature sets that deliver proven, significant total cost-of-ownership value advantages
“This move makes a lot of sense to us, as the combination makes a stronger company and broader product set in a growing market space. Each company has impressive customers and good product lines focused on the Carrier Ethernet access market,” stated Michael Howard, Principal Analyst at Infonetics Research. “The acquisition of Ceterus Networks is a natural progression for Overture, as they are now able to offer a fuller set of Ethernet solutions for the customer edge and mobile backhaul.”
About Overture Networks
Overture Networks is the preferred Carrier Ethernet edge and aggregation partner to more than 180 service providers and enterprise customers worldwide, including 10 of the top 15 US Carrier Ethernet service providers. Its innovative solutions have proven to be integral to a service provider’s ability to fully leverage Carrier Ethernet to multiply service revenues and streamline operational costs. Headquartered in Research Triangle Park, NC, with a technology center in Richardson, TX, Overture Networks is relentlessly focused on providing solutions at the ever-expanding edge of the network. With its patent-protected, award-winning family of products for both business services and cell site backhaul, Overture Networks uniquely combines the packet-switched and circuit-switched worlds into a single architecture—at cost points that make it extremely attractive to offer Carrier Ethernet services to any size location—over optical fiber or copper transport. For more information, visit www.overturenetworks.com
Revolution Partners served as financial advisor to Ceterus Networks