Wednesday, May 28, 2008

VMware Buys B-hive Networks

Palo Alto-based VMware, a developer of system virtualization software, said today that it has entered into a definitive agreement to acquire B-hive Networks, a developer of application performance management software. Financial terms were not disclosed. B-hive Networks is based in San Mateo, with R&D facilities in Herzliya, Israel. The deal is expected to close in Q3. B-hive's software is used to manage application performance and response times, and ties into VMware's infrastructure software. According to VMware, B-hive's R&D facility and team will form the core of a new development center in Israel. B-hive was venture backed by Index Ventures and Venrock Associates.