Cacheflow Snatches Up Entera for $440 million

Cacheflow (www.cacheflow.com), a vendor of caching technologies, today acquired streaming media delivery company Entera ( www.entera.com) for $440 million in a stock deal.

Under the terms of the deal, 3.7 million shares of Cacheflow common stock, with an aggregate value of approximately $440 million, will be exchanged for all outstanding shares and options of Entera.

Cacheflow makes special-purpose servers that speed up Internet data transfer by caching frequently used information closer to the end user. By integrating Entera technologies into Cacheflow appliances, Cacheflow will provide its customers with the industry's broadest support for streaming media services including Microsoft Windows Media, Real, Apple QuickTime and Cisco IP/TV.

"Acquiring Entera is a significant win for our customers and stockholders," said Brian NeSmith, president and CEO of Cacheflow, in a conference call with analysts and the media. "Integrating Entera's cutting-edge streaming and content delivery technologies enhances our optimized appliances and capitalizes on strong market growth for streaming content delivery services."

According to Jupiter Communications, the market segment for streaming content delivery and distribution is expected to grow to an estimated $6 billion by 2004.

Most recently, Fremont, CA-based Entera made news by providing software for Axient Communications in the network that hosted the streaming media services of NBCOlympics.com.