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AT&T to Acquire Vyatta Software Technology from Brocade



Deal Expands AT&T’s SD-WAN and White Box Capabilities

DALLAS, June 2, 2017 — AT&T* has agreed to buy the Vyatta® network operating system and associated assets of Brocade Communications Systems. This platform includes the vRouter product line.  AT&T also intends to hire certain Brocade employees associated with that business. The deal is expected to close in early summer, subject to closing conditions and prior to the closing of the previously announced proposed acquisition of Brocade by Broadcom Limited. Financial terms were not disclosed.

The Vyatta platform will help AT&T continue to drive its network transformation. We expect to virtualize and software-control 75% of our network by 2020. Our plan is to hit 55% by the end of 2017.

“Our network transformation effort lets us add new features quicker than ever before at a much lower cost,” said Andre Fuetsch, chief technology officer and president of AT&T Labs. “Being able to design and build the tools we need to enable that transformation is a win for us and for our customers.”

After the deal closes, AT&T will own the Vyatta network operating system, including its virtual network functions (VNFs) and distributed services platform, software under development as part of its unreleased roadmap, existing software licenses, and related patents and patent applications. The Brocade employees expected to join AT&T are mostly located in California and the United Kingdom.

This acquisition will bolster our ability to deliver cloud or premises-based VNFs, starting with our previously announced SD-WAN cloud service with VeloCloud.

The Vyatta acquisition will also expand AT&T’s white box platform capabilities. In late March, we completed a trial with a handful of companies and industry groups to design and build our own white box switches to manage data traffic more efficiently across our network.
 
*AT&T products and services are provided or offered by subsidiaries and affiliates of AT&T Inc. under the AT&T brand and not by AT&T Inc.
 
About AT&T
AT&T Inc. (NYSE:T) helps millions around the globe connect with leading entertainment, business, mobile and high speed internet services. We offer the nation’s best data network* and the best global coverage of any U.S. wireless provider.** We’re one of the world’s largest providers of pay TV. We have TV customers in the U.S. and 11 Latin American countries. Nearly 3.5 million companies, from small to large businesses around the globe, turn to AT&T for our highly secure smart solutions. 
 
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© 2017 AT&T Intellectual Property. All rights reserved. AT&T, the Globe logo and other marks are trademarks and service marks of AT&T Intellectual Property and/or AT&T affiliated companies.

Brocade and Vyatta are registered trademarks of Brocade Communications Systems, Inc.  All other marks contained herein are the property of their respective owners.

Cautionary Language Concerning Forward-Looking Statements
Information set forth in this news release contains financial estimates and other forward-looking statements that are subject to risks and uncertainties, and actual results might differ materially. A discussion of factors that may affect future results is contained in AT&T’s filings with the Securities and Exchange Commission. AT&T disclaims any obligation to update and revise statements contained in this news release based on new information or otherwise.

*Claim based on the Nielsen Certified Data Network Score. Score includes data reported by wireless consumers in the Nielsen Mobile Insights survey, network measurements from Nielsen Mobile Performance and Nielsen Drive Test Benchmarks for Q3+Q4 2016 across 121 markets.

**Global coverage claim based on offering discounted voice and data roaming; LTE roaming; and voice roaming in more countries than any other U.S. based carrier. International service required. Coverage not available in all areas. Coverage may vary per country and be limited/restricted in some countries.

For more information, contact:
Jeff Kobs
AT&T Corporate Communications
(214) 236-0113
jeffrey.kobs@att.com