June 21, 2012 –AppNeta made a move Thursday to spread the SaaS footprint of its network performance management solutions with the announced acquisition of Tracelytics.

Tracelytics offers on-demand tracing solutions across an enterprise application stack, with support for operating systems such as Red Hat and Ubuntu. AppNeta CEO Jim Melvin says that the vendor’s plan is to “absolutely” expand the existing Tracelytics APM portfolio with its own network performance end-user experience capabilities, and to continue support and development of Tracelytics offerings.

In a statement on the deal, EMA analyst Jim Frey said, "With the steadily increasing use of highly distributed Web-based applications, network performance insight is critical to assuring successful application delivery and a quality end-user experience. Few APM solutions today offer the depth of visibility from the network perspective that is required for this level of end-user experience monitoring."

AppNeta has offices in Boston and Vancouver, and counts a number of government agencies and financial institutions among its 1,400 customers. From 2006-08, Melvin worked as EVP at EMC’s security division, RSA.

Two-year-old startup Tracelytics is based in Boston and finished $5.2 million of series A funding in March. Its CEO, John Vigeant, was formerly an executive at XenSource, bought by Citrix in 2007 for its desktop virtualization capabilities.

Financial details of the AppNeta acquisition were not disclosed, though a spokesperson said the deal is final and that all Tracelytics employees will operate as part of AppNeta.

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