Siemens Buys Chantry
A source familiar with the negotiations tells Unstrung that the German vendor has forked out around $85 million for the deal. Financial details were not officially disclosed.
Chantry has developed a wireless LAN router system that manages access points via Layer 3 connections. The company has raised $26 million in venture capital funding since 2002 (see Chantry Grabs Another $11M).
The startup claims the acquisition will not have a major effect on headcount. "We are about 80 people and we are not expecting any layoffs," Tom Racca, VP of worldwide marketing, tells Unstrung. "Our products will be integrated into Siemens's HiPath portfolio... We don't see any changes in the near term."
Today's deal comes as little surprise in light of the close relationship between both companies. In October, the startup received a $6 million cash injection from Siemens Venture Capital (SVC). (See Siemens Invests in Chantry.) Along with the investment, Louis Rajczi, investment partner at SVC, joined Chantry’s board of directors.
Rumors of a possible OEM deal then followed (see Siemens Linked to Chantry).
— Justin Springham, Senior Editor, Europe, Unstrung