SD-WAN technology company Silver Peak Systems is up for sale and is seeking a potential $1 billion buyout -- though there's no guarantee a deal will emerge, Bloomberg reports.
Updated July 13, 2020: Hewlett Packard Enterprise (HPE) Acquires Silver Peak - Buyout Details
Original July 12 report: Neither Silver Peak nor its venture capital backers have commented on the report.
Silver Peak's revenues, EBITDA and net income are undisclosed -- so it's difficult to say if a $1 billion buyout price tag sounds reasonable.
Silver Peak, led by CEO David Hughes, competes in a hot, fast-growth market. The worldwide SD-WAN (software defined-wide area networking) market grew 64 percent and surpassed $1 billion for the full year 2019, Dell’Oro Group reports.
Silver Peak ranks among the top five SD-WAN companies in terms of market share, according to Dell'Oro Group. Top rivals include Aryaka, Cisco Systems, Fortinet, Nuage Networks from Nokia, Versa Networks, and VMware SD-WAN by VeloCloud, among others.
Silver Peak Systems: MSP Partner Strategy
Ian Whiting, president of global field operations, oversees direct and indirect sales -- including channel and service provider engagements.
Silver Peak's partner-centric solutions include the Unity EdgeConnect -- which enables MSPs to deliver SD-WAN services with SLAs (service level agreements) in and out-of-region, the company says. Unity EdgeConnect surpassed 1,500 customer deployments in early 2019.
Recent partnerships include:
Silver Peak Systems: Funding
Silver Peak, founded in 2004, is backed by multiple venture capitalists. TVG made a $90 million strategic investment in 2018. A $21 million Series D rounded -- way back in 2007 -- featured investments from Artis Capital Management, Benchmark Capital, Duff Ackerman and Goodrich LLC, Greylock Partners, J. & W. Seligman & Co, and Pinnacle Ventures.
