A Gatineau-based software networking company is deepening its new roots in the National Capital Region through the acquisition of a Kanata firm.
Adaptiv Networks announced Wednesday it has acquired the majority of LiveQoS’s assets in a deal that closed in December. Details of the transaction were not disclosed.
Both companies operate in the SD-WAN space, where companies utilize software-defined networks – rather than localized hardware – to improve the flow of data over the internet. SD-WAN-based offerings have grown in popularity in recent years as streaming services and the like ratchet up demands on traditional broadband networks.
While Adaptiv will take on the bulk of LiveQoS’s SD-WAN product line as well as 11 employees, the Kanata company’s file-transfer service MASV will be spun off into a standalone business.
The LiveQoS acquisition brings Adaptiv up to 45 employees across offices in Gatineau, Mississauga and India, with more than half of its workforce in the National Capital Region. CEO Bernard Breton said Wednesday he expects that number to hit 50 as quickly as the company is able to fill its open positions.
Adaptiv moved the bulk of its R&D and head office operations to Gatineau this past year from its traditional Mississauga base. Breton told OBJ then that the depth of telecom talent in Ottawa-Gatineau was a major factor in the relocation decision; the company plans to grow its headcount into the hundreds in coming years.
The LiveQoS acquisition is “a way for us to truly accelerate our growth in the market,” he told OBJ Wednesday.
LiveQoS’s technology provides a layer on top of traditional internet protocol-based networks, Breton said, which turns “dumb pipes” into much more efficient, high-quality connections. The result is lower latency, better routing and fewer dropped data packets while transferring information, he added.
“Combining LiveQoS internet acceleration technologies with Adaptiv Networks cloud-managed SD-WAN solutions will create more value for the Adaptiv Networks customers,” said Salim Nensi, CEO of LiveQoS, in a statement.
A key component of the acquisition is LiveQoS’s patent portfolio. Now combined with Adaptiv’s own IP cache, the company will have rights to some 20 patent families in the SD-WAN market – “by far” the most intellectual property of any competitor in the space, according to Breton.