Sonus Networks has acquired the SDN technology assets of Treq Labs, a start-up based in Sunnyvale, California, for approximately $10.1 million in cash.
Treq’s Spoq platform was developed to virtualize the WAN, enabling on-demand service creation based on business applications and policy.
The acquisition deal includes an Earn-Out Agreement whereby the Sonus has agreed to issue up to an aggregate of approximately 6.6 million shares of common stock over a three-year period of 2015 through 2017 if aggregate revenue thresholds of at least $60 million are achieved by the SDN business during that period, and up to an aggregate of an additional approximately 11 million shares (17.6 million shares in total) if aggregate revenue thresholds of at least $150 million are achieved by the SDN business during that period.
