Venture-backed , a provider of high-speed networking technology, is acquiring a Texas-based competitor.
In a deal disclosed Tuesday morning, Overture said it had acquired Ceterus Networks, which is based in Richardson, Texas.
Financial terms were not disclosed.
Some 20 jobs are being cut as part of the merger, according to a company spokesperson. The cuts were made in overlapping positions of responsibility and affected some 10 people at each of the two firms. The new venture has 95 employees, the spokesperson added.
Ceterus, which closed on $20 million in venture financing in 2007, had been backed by investors such as Intel Capital and Sevin Rosen Funds. Founded in 2001, the company raised more than $40 million from investors.
Overture backers include Intersouth Partners in Durham. Overture has raised more than $40 million in venture capital, including $12.3 million last year.
The deal will enable Overture to expand its product offerings of Ethernet speed services, according to Overture Chief Executive Officer Jeff Reedy.
“Ceterus Networks has built a strong reputation for innovative and cost-effective [network] carrier Ethernet solutions,” Reedy said. “As an early leader in cell-site backhaul, it has successfully tackled the many technical and operational nuances with which others still struggle.”
Cell site backhaul refers to high-speed transport of data between wireless carriers’ towers.
“The addition of Ceterus’ product family enables Overture Networks to offer carrier Ethernet access aggregation solutions in both retail services and wholesale backhaul to service providers around the world,” Reedy said in a statement.
David Stehlin, who had been CEO of Ceterus, will remain with the combined company as president.
“The market potential for the two companies combined far exceeds what each one could accomplish on its own,” Stehlin said.
