Cisco Systems is to acquire Riverhead Networks, a developer of security technology. Riverhead was co-founded in 2000 by Gemini Israel Funds which invested in a seed round and two subsequent rounds of funding totaling some $15m. Cisco will pay around $39m in cash for all outstanding shares of Riverhead.
Gemini venture partner Dr Orna Berry who became Riverhead’s chairman helped the company formulate its strategy, recruit senior management and attract Intel, Cisco, Sequoia and Koor as investors. The company has 44 employees in Cupertino, California and Tel Aviv, Israel.
Gemini partner Lior Berger, who joined Dr Berry on Riverhead’s board commented: “This is a major step in the growth of Riverhead and Orna and I are delighted that Cisco, following its investment in the company has perceived the strategic fit between its own business and Riverhead’s technologies. The acquisitions is a credit to the technical founders and we wish them well.”