December 3, 2004 — (WEB HOST INDUSTRY REVIEW) — Data center automation software developer Opsware (opsware.com) said on Thursday that it has signed an agreement to acquire Rendition Networks (rendition.com), a developer of network device automation software, for $33 million, a sum that includes $15 million in cash and about 2.68 million shares of Opsware common stock.
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Rendition will continue to operate in Redmond, Washington, headed by founder and chief technical officer Eric Johnson. The company has approximately 30 customers in the financial services, government and telecommunications industries.
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Opsware said the integration of the two companies will enable it to offer a solution that automates the management of server, software and network components, and the complete operations lifecycle of the Web-based applications these components support. The combination, Opsware says, will automate business services, UNIX, Linux, and Windows servers, software, applications, and all network devices including routers, switches, firewalls and load balancers.
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“The combination of world leading server, application and network automation will provide a breakthrough automation solution unmatched in the marketplace,” says Ben Horowitz, president and CEO of Opsware. “The market demands a solution that takes into account and manages the entire application infrastructure, and Opsware will be the one company that can provide this. This accelerates our leadership in the IT automation market.”
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Opsware said it plans to integrate Rendition’s TrueControl with the Opsware System and still offer both products separately.
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The acquisition is subject to customary closing conditions and awaiting regulatory approvals.
