Not long after VMware paid $420 million for SprintSource, the Peninsula has another 9-digit exit by a company whose product description is probably unintelligible to the average Twitter user.
Network gear maker Tellabs has agreed to pay $165 million in net cash to buy WiChorus, maker of technology that connects mobile phones to the Internet in such a way that they seem like Internet Protocol, or IP devices.
Smart 4G Packet Core infrastructure technology, as it’s called, isn’t just router stuff. It also handles billing. But a big part of WiChorus’ appeal is the company’s A UBS analyst estimated the mobile core market for all this equipment could reach $2.6 billion in four years. WiChorus also tracks location. We last wrote about the company last year.
The success of a company like WiChorus validates Oracle CEO Larry Ellison’s contempt for the term “the Cloud.” There’s a lot of serious hardware and software hiding in the Cloud, and a lot of money to be made by building that gear which users won’t know exists.
The company had received $43 million from four venture firms, Accel Partners, Mayfield Fund, Pinnacle Ventures and Redpoint Ventures