Cisco is paying $610 million to acquire Viptela, a software-defined-networks (SDN) start-up in Silicon Valley that was co-founded in 2012 by Pakistani-American entrepreneurs Amir Khan, Atif Khan and Khalid Raza.

Software defined network (SDN) technology allows network managers to configure, manage, secure, and optimize network resources quickly as needed via dynamic, automated SDN programs.

"Together, Cisco and Viptela will be able to deliver next-generation SD-WAN solutions to best serve all size and scale of customer needs, while accelerating Cisco's transition to a recurring, software-based business model," said Rob Salvagno,  Cisco's executive in charge of mergers and acquisitions.

Viptela's software-defined wide area networking (SD-WAN) technologies are enabling small and large companies tackle the ongoing transition from traditional client-server model to cloud computing efficiently and effectively.

Viptela was founded by 5 co-founders, three Pakistanis and two Indians,  in 2012 and had raised more than $108 million, including its most recent $75 million round just last May. The $610 million sale price offers a pretty good return for investors.

Prior to starting Viptela, the founders worked in different capacities for major network equipment companies including Cisco, Huawei and Juniper. One of the founders, Khalid Raza, is an alumnus of Karachi's NED University of Engineering and Technology.

Viptela and other companies in this space are benefiting from the continuing transition to a cloud-based subscription business.

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