Brief: Enterasys Adds VPN Player to Its Stable

In its first acquisition since spinning off from Cabletron Systems Inc. earlier this year, Enterasys Networks pocketed VPN maker Indus River Networks Inc. this week for US$170 million in stock.

Indus River makes products for large-scale VPN deployments supporting thousands of users. VPN technology allows companies to configure a secure private network over a public network such as the Internet.

Enterasys officials said the acquisition will help fortify the company's strategy of providing secure connectivity for large enterprise customers searching for methods of extending corporate data to growing numbers of telecommuters and remote workers.

Large enterprises are starting to ramp up site-to-site VPN connectivity for linking multiple corporate locations or sharing extranet applications with suppliers and partners, Enterasys officials said.

Within 60 days, Enterasys expects to announce products based on Indus River's RiverWorks line of VPN offerings. Products will introduce a new architecture designed to increase capacity and add support for more users, officials added.

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