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Riverbed goes shopping, buys Aptimize, Zeus, but Q2 light

By | July 19, 2011, 1:30pm PDT

Summary: Riverbed Technology announced a pair of international acquisitions designed to build out its portfolio, but the second quarter falls short of estimates.

Riverbed Technology on Tuesday announced a pair of international acquisitions designed to build out its portfolio.

The company said it will acquire Aptimize Limited, a privately held company in New Zealand. Aptimize is focused on Web content optimization. Aptimize will be lumped into Riverbed’s new Web content optimization unit.

Separately, Riverbed said it will acquire Zeus Technology, another privately-held company focused on load balancing and traffic management for cloud environments. Zeus is based in Cambridge, U.K. Zeus CEO Jim Darraugh will lead Zeus as it becomes a unit of Riverbed.

The acquisitions come as Riverbed’s second quarter fell short of expectations. The company reported second quarter earnings of $11.3 million, or 7 cents a share, on revenue of $170.3 million, up 35 percent from a year ago. Non-GAAP earnings were 21 cents a share. Wall Street was looking for earnings of 21 cents a share on revenue of $172.8 million.

Riverbed said business was soft in Europe, Middle East and Africa due to a weak economy and the company’s inability to execute.

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Riverbed Technology Inc., Zeus Technology, Aptimize Ltd., Mergers & Acquisitions, Financial Accounting, Corporate Law, Investment, Finance, Business Operations, Larry Dignan

Larry Dignan is Editor in Chief of ZDNet and SmartPlanet as well as Editorial Director of ZDNet's sister site TechRepublic.

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Larry Dignan

Larry Dignan has nothing to disclose. He doesn’t hold investments in the technology companies he covers.

Biography

Larry Dignan

Larry Dignan is Editor in Chief of ZDNet and SmartPlanet as well as Editorial Director of ZDNet's sister site TechRepublic. He was most recently Executive Editor of News and Blogs at ZDNet. Prior to that he was executive news editor at eWeek and news editor at Baseline. He also served as the East Coast news editor and finance editor at CNET News.com. Larry has covered the technology and financial services industry since 1995, publishing articles in WallStreetWeek.com, Inter@ctive Week, The New York Times, and Financial Planning magazine. He's a graduate of the Columbia School of Journalism and the University of Delaware.

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