November 5, 2012 – Networking solutions provider Brocade has proposed a buyout of Vyatta, a vendor specializing in software-defined networks and operating systems.

Brocade CEO Mike Klayko said Monday in a release on the proposed deal that Vyatta’s technology and expertise would complement Brocade’s development in Ethernet fabrics and SDN, and advance Brocade’s footprint in data center virtualization, enterprise private and public cloud, and managed services.

Over the summer, Vyatta added routing and security enhancements to the latest version of Vyatta Network OS 6.5 and introduced its “Empowering SDN” guidelines for building capacity-on-demand networks. Vyatta is based in Belmont, Calif.

Following the close of the acquisition, Vyatta will be merged into the Software Networking Business unit reporting to Brocade VP Ken Cheng.

“There are many significant developments happening today that are redefining data center architectures and industry landscapes,” said Cheng in a release on the deal. “We believe software networking to be a critical component in the next phase of network virtualization as enterprises are becoming increasingly virtualized and actively moving workloads to the cloud.”

In the last few months, Brocade has expanded its cloud offerings and networking partnerships, including a running deal with EMC. The Vyatta proposal is the first by Brocade in 2012.

Financial terms were not disclosed. The deal for privately held Vyatta is subject to closing conditions. Brocade anticipates that it will close by the end of this year.

VMware and Oracle have separately made deals in the SDN space in the last four months.