Router Software Market Consolidates As Intelliden Buys Gold Wire

Deal was completed in 19 days.

August 10, 2004

2 Min Read
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Intelliden Corp., which has expanded router configuration software into full router management suites, has acquired Gold Wire Technology Inc. of Waltham, Mass.

Gold Wire's Formulator router configuration product fleshes out enterprise-based software products for Intelliden, which will integrate Formuator into the R-series of networking software.

Gold Wire originally promoted Formulator as an Internet Service Provider backbone product based solely on software, and counted PSInet as an original customer. Following the Internet crash, Gold Wire struggled to change its orientation to large enterprises when PSInet declared bankruptcy.

Other large backbone customers such as Qwest Communications Inc. eliminated many contract projects, forcing Gold Wire to repackage Formulator for enterprises, bundling it with hardware accelerators. Enterprise customers for the new Formulator include ADP, Staples and Bear Stearns.

While Intelliden did not disclose terms of the acquisition, Gold Wire had cut back its staff and had been looking for a buyer. Intelliden chief executive Dale Hecht said he contacted Gold Wire shortly after hearing rumors that it was for sale to confirm its availability. The deal was completed in 19 days.Intelliden's acquisition of Gold Wire puts the company, based here, in a commanding position in router configuration and analysis tools. Ipsum Networks Inc. remains a close competitor with its Route Dynamics software, though Ipsum has tied its software to the multi-area path appliance system for central management and an "IP Listener" appliance for client sites.

The moves raise an important issue about how far Intelliden wants to move into hardware products.

"The integration of software into the R-series has begun," Hecht said. "We're not exactly positive where we want to go on the hardware issue. Keeping a hardware-software combination for compliance and authentication might make some real sense, though it will represent new types of support issues for us."

While only a handful of people had been left at Gold Wire headquarters, Hecht said it would likley keep a Boston-area development office open. Intelliden will look at consolidating operations with its existing Boston sales office.

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