The company, based in Palo Alto but founded down under, was founded back in 2002 originally as a hardware company, providing technology to map networks by looking for patterns such as spam, malware and other types of intrusions.
Sensory Networks' technology now works off a software model, and runs at 160 gigabytes per second on Intel processors.
The company was founded by a number of Australian technology entrepreneurs including Matt Barrie, who later left to found Freelancer.com. Other co-founders included Nicholas de Jong and Darren Williams, who now also work at Freelancer, and Stephen Gould, who is now a senior lecturer at the Australian National University.
Barrie left Sensory Networks as a director but remains a shareholder, and is currently CEO of Freelancer.com.
"It is a great outcome for the team," Barrie told tech news outlet SC Magazine.
"With Intel behind us, it will help us get into the Tier one space ... it is something you need when you try to sell to Cisco."
Chief Technical Officer at Sensory Networks Geoff Langdale told Yahoo7 he was pleased with the outcome.
“I can confirm we are in process of closing a deal to be purchased by Intel," he said.
“We are all very pleased with the outcome - good results for a small startup in a technically difficult area. We are pleased you can do real computer science and make some money.”
“It’s not all about social media and shopping - working on hard problems that nobody else wants to challenge can be rewarding both intellectually and you can get a good financial outcome.”
More info can be found on Sensory Networks at its official website here. Freelancer.com recently made headlines when Matt Barrie rejected a $430 million buyout, opting instead for an Australian stock exchange launch.