SUNNYVALE, California - December 18, 2000 - CacheFlow Inc. (NASDAQ: CFLO), the intelligent content networking company, today announced it has completed the acquisition of Entera, Inc. of Fremont, California, which was previously announced on October 10, 2000.
Entera develops standards-based streaming content distribution and management technologies. The Entera technology provides CacheFlow customers with products to enable them to deploy streaming technology across corporate networks efficiently. Employees of Entera will be integrated into CacheFlow and are expected to immediately contribute to CacheFlow streaming solutions. The staff includes among them developers of the streaming standards RTSP and RTP.
Under the terms of the agreement each share of Entera stock was converted into the right to receive 0.107657 shares of CacheFlow common stock, which will result in the issuance by CacheFlow of approximately 3.4 million shares of CacheFlow common stock. Based on the December 15, 2000 closing price the transaction, which will be accounted for as a purchase transaction, is valued at approximately $170 million.
"We welcome the Entera employees to CacheFlow, and are very pleased with the positive response from our customers to the acquisition," said Brian NeSmith, CacheFlow president and chief executive officer. "The Entera acquisition underscores CacheFlow's relentless focus on delivering end-to-end content-smart networking solutions. The combined company offerings will allow enterprises and service providers to build the content delivery networks required to deliver live and on-demand streaming content."
About CacheFlow Inc.
CacheFlow is focused on content-smart networking -- a new layer of infrastructure for intelligently accelerating, delivering, and managing static, streaming, dynamic and application content. CacheFlow's market-leading appliances and innovative content delivery technologies enable enterprises, service providers and content providers to deliver the right content to the right place at the right time. Based in Sunnyvale, California, CacheFlow can be contacted via telephone at (408) 220-2200, fax at (408) 220-2250 or email at email@example.com
This press release contains forward-looking statements about CacheFlow's acquisition of Entera and the market for streaming content delivery and distribution and the company's future business and financial prospects. These forward-looking statements involve risks and uncertainties. Actual results could differ materially. Important factors that could cause actual results to differ materially include the level of demand for Cacheflow's products and services; the intensity of competition; CacheFlow's ability to effectively manage product transitions and to continue to expand and improve internal infrastructure; risks associated with potential acquisitions; and risks related to the Internet caching appliance industry. For a more detailed discussion of the risks relating to CacheFlow's business, investors should read CacheFlow's Form 10-Q for the quarter ended October 31, 2000, and CacheFlow's Form 10-K for the year ended April 30, 2000, which are on file with the Securities and Exchange Commission. All forward-looking statements included in this press release are based upon information available to CacheFlow as of the date hereof, and CacheFlow assumes no obligation to update these forward-looking statements.
Charles King-Holford/Alia Ilyas
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