The deal, for an undisclosed sum, will see the Sydney-based Packetloop, which offers Cloud-based security services and Big Data analytics, increase engineering staff locally to a total of 17 initially, with additional expansion planned in 2014.
The new positions will be part of new research and development facility to be built in Sydney on the back of the agreement. Positions include software developers, UI developers, DevOps and project managers.
Packetloop chief executive Scott Crane, who co-founded the company in 2011 with CTO Michael Baker, told ARN the company was born out of a need he and baker saw in the market.
"What sets us apart is that we have conquered the elements of size and scale," he said. "We process data in real time it's a really powerful solution."
Crane said one of the key elements of the deal was being able to remain in Australia and hold on to their identity as company.
"For our product development team we will have about we will have about 12 people for this team so that will be hugely increasing our team," he said.
"One of the massive attractions is that culturally Arbor are almost identical to us and have very similar ideals and the fact that we have been able to stay in Australia means our identity will be maintained and possibly improved."
Arbor engineering vice president Kris Lamb said the catalyst for the deal was Arbor's desire to accelerate security technologies in the area of advanced threat detection.
"In particular we felt that Packloop technology provides us with huge disruptive and innovative data security combined with packet capture security capability," he said.
Arbor technology is deployed in 70 per cent of service provider networks globally and 90 per cent of tier one operators.
Packetloop's solution delivers real-time, network-wide situational awareness through a combination of packet capture, big data analytics, security forensics and visualisations that help enterprises identify malware, targeted attacks and attackers. Arbor will integrate Packetloop's capabilities into its enterprise solution platform this year, delivering a broad, integrated set of network visibility; threat detection and mitigation; incident response; and forensics capabilities that become the foundation of Arbor's next-generation threat monitoring and mitigation platform.
IDC analyst John Grady said said adding a big data security analytics and forensics platform like Packetloop made sense as they extended into the broader advanced threat market.
"Arbor now has a unique combination of NetFlow, packet capture and global threat intelligence from their ATLAS infrastructure to address today's dynamic threats that evade signature-based solutions."