Sandvine concludes purchase agreement with Teclo Networks AG, gains next generation TCP Acceleration solution

WATERLOO, ON, Feb. 29, 2016 /CNW/ - Sandvine, (TSX:SVC) a leading provider of intelligent network policy control solutions for fixed and mobile operators, today announced that it has entered into an agreement to purchase the business of Teclo Networks AG ("Teclo"), a Switzerland-based  company that offers a TCP Acceleration solution to mobile operators, including satellite technologies.  The solution dramatically enhances the quality of experience for mobile Internet subscribers on 2G to 5G networks, reduces the risk of subscriber churn and extends network life. The transaction is subject to customary closing conditions including the approval by Teclo's shareholders.  The transaction is expected to close in March. Financial details were not disclosed.

With the acquisition, Sandvine launches the new Sandvine TCP Accelerator product as part of its Traffic Optimization portfolio. TCP traffic accounts for 90-95% of all Internet traffic, and its congestion controls were historically designed for fixed line networks and can create significant inefficiencies in today's mobile networks. With Sandvine TCP Accelerator, mobile network operators can expect significant increases in TCP traffic throughput (speed) and meaningful decreases in latency (traffic delays), including for encrypted traffic. This increased performance significantly improves the quality of experience for mobile Internet subscribers, resulting in a "snappy" web browsing experience, and reduces the risk of subscriber churn.

"While all the talk is about 4G and 5G, people forget that the dominant mobile Internet access type globally remains 2G and 3G. TCP Acceleration is a proven, regulatory-neutral approach to improving subscriber satisfaction and extending the life of mobile networks," said Don Bowman, Sandvine's Chief Technology Officer. "TCP Acceleration works on encrypted traffic, unlike video optimization, content caching and certain other specialized optimization techniques. So while we have seen other companies exit the Traffic Optimization space, this is another example of how Sandvine is embracing the encryption trend to help operators continue to manage their networks in a world where most traffic is already encrypted."

Some specific benefits of the Sandvine TCP Accelerator include:

• Protects the network from bursty traffic and bufferbloat – a notable issue in 4G networks
• Decreased round trip times while achieving full utilization of available Radio Access Network (RAN) resources
• Removes session slowdown from RAN latency/congestion at the TCP layer including on MOCN (Multi-Operation Core Networks)
• Effective acceleration of encrypted traffic
• Reduces TCP retransmissions and gets the first byte out quicker when restarting operations after connections are reestablished
• Accelerates both uploads and downloads from mobile devices
• The market's only fully transparent solution, i.e., does not introduce the inherent reliability and efficiency issues of competing proxy-based solutions

"There are a number of significant near-term opportunities for TCP Acceleration and our product offers significant technical advantages," said Jane Walerud, CEO of Teclo. "Mobile operators have represented Sandvine's largest market for years and the company has an extensive customer base. Together, we are in a much better position to take advantage of an opportunity that has a compelling value proposition to mobile operators."

Teclo has 10 customers using its products today, including 9 that are new to Sandvine.

The TCP Accelerator product will be priced as a term-based license.

ABOUT SANDVINE

Sandvine's network policy control solutions add intelligence to fixed, mobile and converged communications service provider networks to enable services that can increase revenue and reduce network costs. Powered by Sandvine's Policy Engine and SandScript policy language, Sandvine's networking equipment performs end-to-end policy control functions including traffic classification, and policy decision and enforcement across the data, control and business planes.  Sandvine's products provide actionable business insight, the ability to deploy new subscriber services and tools to optimize traffic while enhancing subscriber Internet quality of experience.

Sandvine's network policy control solutions are deployed in more than 250 networks in over 90 countries, serving hundreds of millions of data subscribers worldwide, www.sandvine.com.

FORWARD-LOOKING STATEMENTS

Certain statements in this release which are not historical facts constitute forward-looking statements or forward-looking information within the meaning of applicable securities laws ("forward-looking statements") and are made pursuant to the "safe harbour" provisions of such laws. Statements related to the scope of deployment of Sandvine's products by a specific customer, the potential revenue opportunity with any particular customer or in any market segment, the benefits of Sandvine's products and services to be realized by customers, Sandvine's market position, future opportunities, product development plans and demand for Sandvine's products and services are forward looking statements, as are any statements relating to future events, conditions or circumstances. Readers are cautioned not to place undue reliance upon any such forward-looking statements. Such forward-looking statements involve both known and unknown risks and uncertainties that may cause the actual results, performance or achievements of Sandvine to differ materially from the results, performance, achievements or developments expressed or implied by such forward-looking statements. These risks and uncertainties include, without limitation, risks associated with any acquisition or disposition activities; the successful integration of acquired companies; changes in internal deployment strategies or plans by specific customers; the growth of broadband Internet usage and levels of capital spending on broadband network management systems; the timing of orders and manufacturing lead times; changes in customer order patterns or customer mix; insufficient, excess or obsolete inventory; increased competition in the broadband network equipment industry; dependence on the timely development and market acceptance of new product offerings and standards; rapid technological and market change; manufacturing and sourcing risks including dependence on key suppliers and key technologies; dependence upon indirect channel sales and resellers; factors such as business and economic conditions and growth trends in the broadband network equipment industry and in various geographic regions; global economic conditions and uncertainties in the geopolitical environment including the impact of regulation related to the Internet and the delivery of Internet services. Forward-looking statements are based on management's current plans, estimates, projections, beliefs and opinions, and Sandvine does not undertake any obligation to update forward-looking statements should assumptions related to these plans, estimates, projections, beliefs and opinions change, except to the extent required by applicable law.

SOURCE Sandvine

INVESTOR CONTACT: Rick Wadsworth, Sandvine, [phone] ext. 3503, [email protected]; MEDIA CONTACT: Dan Deeth, Sandvine, [phone], [email protected]