HP this week signed a definitive agreement to acquire ConteXtream, a provider of OpenDaylight-based SDNs for service providers.

Terms of the deal were not disclosed.

ConteXtream develops an SDN controller for Network Functions Virtualization (NFV), software-based services that replace hardware-dependent Layer 4-7 functions, like load balancing and firewalls. ConteXtream’s products enable carriers to use existing standard server hardware to virtualize functions and services for subscribers, and to chain services across servers and subscribers.

ConteXtream had been a participant in HP’s OpenNFV ecosystem. The private company was founded in 2007.

HP says acquiring ConteXtream will strengthen its position in the NFV market, which could be $11 billion by 2018. HP also says it will increase its involvement in and contribute ConteXtream capabilities to the OpenDaylight community to help in the delivery of an open source SDN controller.

HP’s OpenNFV program supports multiple SDN controller technologies, the company says.

Cisco recently boughtLayer 4-7 SDN company Embrane.

HP expects the transaction to close in its third fiscal quarter. Upon close, ConteXtream will become part of HP’s Communications Solutions Business.

ConteXtream co-founder Nachman Shelef, ConteXtream’s current CEO and chairman, will continue to lead that business within HP and will report to Saar Gillai, HP senior vice president and general manager for NFV.

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