Yesterday, Kelowna-based Vineyard Networks announced at Accelerate Okanagan that it has entered into an agreement to be acquired by Procera Networks, a global intelligence enforcement company from Fremont, CA.
According to James Brear, Procera’s CEO, “Vineyard has built the most complex software in the world.”
The $28 million acquisition was made public at a press conference and quickly appeared in the headlines of major news sources. The deal consisted of $15.4 million in Procera common stock and $12.6 million in cash and is said to expand Procera’s services to enterprise customers and add $4 to $5 million to their 2013 revenue.
One thing these articles didn’t capture, however, was the emphasis that Jason Richards, Vineyard’s CEO, places on the support of the Kelowna technology community.
Surprised by the turnout and running purely on adrenaline, Richards quickly shifted the announcement from the “nuts and bolts” of the transaction—“that stuff’s all in the press release”—to the local support they received over the years. Amongst others, he thanked local angel investors and government-supported programs such as the Industrial Research Assistance Program, the Southern Interior Development Initiative Trust and the Southern Interior Innovation Fund.
“Vineyard is what I would call a community success story,” said Richards. “Belief in our vision and our ability to deliver on that vision made this all possible—it’s all about the community.”
Keeping in line with this community-centred vision, Vineyard’s team won’t be going anywhere. Procera has invested in Kelowna; the acquisition will create more regional high-tech jobs, innovation and inspire more technology companies to expand and grow within the Okanagan Valley.
“This isn’t an exit of Vineyard, it’s an integration of Vineyard into Procera,” stated Richards. “Everyone keeps asking me ‘what are you going to do next?’ Well, we’re going to do Procera next. We are very committed to the success of the integration of this acquisition for the foreseeable future.”
Procera’s CEO, James Brear, joined Vineyard for the Kelowna announcement: “What they [Vineyard] built is shockingly incredible. You should be really proud of them. This isn’t just a Canadian thing, this isn’t Silicon Valley, it’s global.”
Details of the acquisition can be found within the press release.