HP has acquired ConteXtream, a maker of software defined networking and network function virtualisation software.

The company’s software is based upon the open source project OpenDaylight, which enables carriers to leverage existing server hardware to virtualise functions.

The company had been working with HP since February when it joined the OpenNFV Partner Program, which led to its SDN fabric being integrated with HP’s NFV software portfolio.

Saar Gillai, SVP, NFV HP, wrote: "I’m pleased to welcome the ConteXtream team and its deep expertise in carrier-grade network virtualization solutions to HP."

"This acquisition will further strengthen HP’s leadership in the fast-growing NFV market, which some analysts expect to grow to $11B by 2018."

Once the transaction has been closed, ConteXtream will become part of HP‘s Communications Solutions Business.