Packeteer Buys Mentat For $16.5M

Packeteer announced today that it has acquired Los Angeles-based Mentat, a developer of protocol acceleration technology for satellite and long-latency networks. Packeteer is a developer of WAN application traffic management tools. Packeteer will pay $16.5M in cash to acquire Mentat, plus pay approximately $3.5M in retention bonuses to Mentat employees in cash and restricted stock. Packeteer said that the acquisition would add significant technolog for additional acceleration capabilities for its Fast WAN appliances. Mentat's existing SkyX product line provides acceleration of TCP/IP on satellite and long-haul links and is used by service providers, corporations, and government organizations. The acquisition is expected to add between $6.0 and $7.0M to Packeteer's total revenues in 2005. Packeteer was advised in the transaction by Viant Capital.