CacheFlow Inc. has agreed to buy privately held Entera Inc. for $440 million in common stock. The vendor of caching and Web-acceleration technologies expects to complete the purchase in the third quarter of fiscal year 2001 and intends to integrate Entera's streaming technologies into its own caching and Web-acceleration devices.
Building on the momentum of its recent initial public offering, "CacheFlow has a quite successful and high-energy business, and this is a complementary merger," says Peter Christy, research director at Jupiter Media Metrix. "It makes sure that CacheFlow can stay up with [its] competition, and, for customers, it gives them a broader set of things they can do with CacheFlow's products," Christy says.
Once Entera's technology is integrated into CacheFlow's Web appliances, CacheFlow will support a broad array of streaming-media services, including platforms such as Microsoft Windows Media, Apple QuickTime, Cisco IP TV, MP3, Flash, and MPEG, CacheFlow execs say. They add that Entera's technology also will give CacheFlow new capabilities for managing end-to-end media content.