Arista acquires VeloCloud SD-WAN to expand enterprise networking

Published 01/07/2025, 14:16
Arista acquires VeloCloud SD-WAN to expand enterprise networking

SANTA CLARA - Arista Networks (NYSE:ANET), a prominent player in the Communications Equipment industry with robust financials and a market capitalization of $128.5 billion, has acquired the VeloCloud SD-WAN portfolio from Broadcom, expanding its enterprise networking capabilities with new AI-driven products, according to a press release issued Tuesday. According to InvestingPro data, the company maintains excellent financial health with a current ratio of 3.93 and holds more cash than debt on its balance sheet.

The networking company, which has demonstrated strong revenue growth of 22.3% over the last twelve months, is introducing several new products including a compact fanless PoE switch, Wi-Fi 7 access points, and the AWE-7220R WAN router with regional connectivity. These offerings aim to enhance branch edge networking capabilities for distributed enterprise environments.

VeloCloud’s cloud-delivered SD-WAN solutions feature integrated security and will complement Arista’s existing wired and wireless switching portfolio. The acquired technology includes edge hardware platforms with secure firewalling and application-optimized SD-WAN, available with integrated Wi-Fi and 5G connectivity options.

"We have been using Arista and VeloCloud in production environments," said Alan Davidson, CIO of Broadcom Inc. "The addition of the VeloCloud edge strengthens and scales the enterprise WAN network."

Arista’s new campus portfolio includes a 12-port PoE switch in the 710 family designed for remote office deployments, an outdoor Wi-Fi 7 access point (O-435) for harsh environments, and an entry-level Wi-Fi 7 indoor access point (C-400) for cost-effective branch environments.

The company also announced that its CloudVision AGNI now supports fully on-premises deployment, catering to customers with strict regulatory and data compliance requirements.

The O-435 and C-400 access points will ship in Q2 2025, while the 710XP switch will be available in early Q3 2025. The AWE-7220R WAN router is shipping now.

Arista Networks was recently positioned in the Visionaries Quadrant of the 2025 Gartner Magic Quadrant for Enterprise Wired and Wireless LAN Infrastructure, according to the press release. Based on InvestingPro analysis, the stock appears to be trading above its Fair Value, with 17 analysts recently revising their earnings expectations upward. Investors seeking deeper insights into Arista Networks’ valuation and growth prospects can access the comprehensive Pro Research Report, available exclusively on InvestingPro, along with 15+ additional ProTips and detailed financial metrics.

In other recent news, Arista Networks has seen several notable developments. Evercore ISI raised its price target for Arista Networks to $110 from $105, maintaining an Outperform rating. The firm anticipates Arista will raise its revenue guidance to at least 20% in the upcoming second-quarter results, driven by factors like product deferred revenue and purchase commitments. Additionally, KeyBanc initiated coverage of Arista Networks with an overweight rating and a price target of $115, citing the company’s strong position in cloud and data center networking. In leadership news, Arista announced the appointment of Todd Nightingale as President and COO, effective July 1, 2025. Nightingale, with previous leadership roles at Fastly and Cisco, brings extensive experience to the company. Furthermore, Arista Networks held its 2025 Annual Meeting of Stockholders, where key proposals, including the election of directors and executive compensation, were approved. Lastly, Citi reiterated a buy rating and a $112 price target on Arista, highlighting the company’s potential benefits from AI networking growth and Oracle’s increased capital expenditures.

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