Netilla, AEP Systems To Merge

Now operating under the name AEP Networks, the combined company will aggressively grow its channel efforts, according to Reggie Best, CEO of Netilla, Somerset, N.J.

"This is huge news for resellers because we plan to grow our channel quite a bit," Best said, noting that the company combines about 125 solution providers. "We expect to add new partners to the mix."

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 both secure remote access and internal, site-to-site communications.

Under the terms of the agreement, Best becomes executive vice president of marketing and heads the firm's Secure Application Access business unit. Pat Donnellan, CEO of London-based AEP Systems, London, takes over as CEO of AEP Networks.

Solution providers said the move was a smart one. Steve Ryder, president of WAN Strategies, a Netilla solution provider in Keene, N.H., said he was excited at the prospect of using technology from AEP to expand into government verticals.

"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 a related announcement, AEP Networks also revealed additional $5 million in venture funding from existing investors. These include ACT Venture Capital, Ascend Venture Group, Early Stage Enterprises, Masthead Venture Partners, Mid-Atlantic Venture Funds and NJTC Venture Fund.