Consolidation: Netilla, AEP To Join Forces

Now operating under the name AEP Networks, the company will aggressively grow its channel efforts, said Reggie Best, CEO of Netilla. Best will take the title of executive vice president of marketing in the combined company and will head its Secure Application Access business unit. Pat Donnellan, CEO of London-based AEP Systems, takes over as CEO of the new company, which will be based at Netilla's headquarters in Somerset, N.J.

"This is huge news for resellers because we plan to grow our channel quite a bit," Best said. The combined company works with a roster of about 125 solution providers. "We expect to add new partners to the mix," he said. AEP Networks plans to target the health-care public sector and financial services markets.

Representing a merger of equals, AEP Networks combines complementary product lines that now provide a full spectrum of secure networking solutions. These include high-security IPsec-based VPN products from AEP, as well as SSL VPN and secure application access management products from Netilla. The offerings will enable solution providers to sell products for both secure remote access and internal, site-to-site communications from a single vendor.

Mark Goodson, vice president of sales at Netwave, Columbus, Ohio, said the merged company would enable him to offer a broader base of products to pre-existing customers.

Steve Ryder, president of WAN Strategies, a Netilla solution provider in Keene, N.H., agreed, adding that he was excited at the prospect of using technology from AEP Networks to expand into new markets. "IPsec is popular in the government space. With access to that technology, we expect to make some headway in that vertical," he said. "Together, both companies should do a good job of developing technology you can't find anywhere else."

In addition, AEP Networks received an additional $5 million in venture funding from existing investors including ACT Venture Capital, Ascend Venture Group, Early Stage Enterprises, Masthead Venture Partners, Mid-Atlantic Venture Funds and NJTC Venture Fund.