Azalea Acquired: Wireless Video Surveillance Deal ExaminedBy: John Honovich, Published on May 09, 2010
Azalea Networks, a wireless mesh provider specializing in video surveillance applications was acquired [link no longer available] by Aruba Networks, a broad provider of wireless/Wifi solutions for corporations.
The maximum price to be paid for Azalea is approximately $40 Million. However, $13.5 Million is based on future cash payouts on contingent rights. The initial stock purchase of $27 Million is also subject to a number of adjustments (review the 8K for details on the acquisition terms [link no longer available]).
Azalea Networks reports raising $27 Million since its inception in 2005 (see company profile [link no longer available] and SEC documents). Its last round publicly announced was $15 Million in Q1 2008.
Aruba Networks, the acquirer has published a FAQ on the acquisition including the following key details on Azalea:
- Claims 25,000 mesh units deployed
- Claims 140 total customers
- $5 Million in 2009 revenue
- About 100 worldwide employees (most in China)
- Most sales are to China and US
- Citing IDC, claims to be largest mesh vendor in China