Juniper Networks got a bargain when it scooped up packet optical vendor BTI Systems last week, paying $50 million -- or less.
That $50 million-or-less price tag was passed to us from three sources, with a fourth saying the company sold for "peanuts."
The reason for the low price? BTI's packet optical technology is unremarkable, according to one source. "How much do you pay for a dead horse?" says the source.
BTI has raised $130 million since its founding in 2000 and about $60 million in growth funding since 2011.
Juniper announced the acquisition last week, saying it wants to leverage BTI for the DCI market. Content, cloud and communications service providers need networking technology designed specifically to transport large volumes of traffic between data centers securely and efficiently, Juniper says. (See Juniper Flies Into DCI With BTI Acquisition.)
Juniper doesn't want to build a big optical business, but rather to serve the DCI and metro markets, CEO Rami Rahim said on the company's earnings call Wednesday, the day after announcing the acquisition. (See Juniper: Packet-Optical Convergence Driving BTI Acquisition.)
A Juniper spokesperson declined to comment. The terms "are not considered to be material to our financials," the spokesperson said in an email to Light Reading. "However, we look forward to sharing more information in Q2 of this year," the spokesperson said.
— Mitch Wagner, , West Coast Bureau Chief, and Stephen Saunders, Founder and CEO, Light Reading