The company was founded in 2000 when co-founders Farnam Jahanian and Rob Malan spun out research from the University of Michigan, sponsored by DARPA, Cisco, and Intel.[7] They were joined by students Jonathan Arnold, Matthew Smart, and Jonathan Poland, and entrepreneurs Ted Julian and Dug Song to make the founding team. The company raised $11 million in a round of venture capital. Later, in August 2002, the company raised another $22 million in a second round of venture capital, led by Thomas Weisel Venture Partners, with participants that included Battery Ventures and Cisco Systems, among others.[5] In January 2008, Arbor acquired Ellacoya Networks, a company which provides broadband traffic shaping products. The acquisition was expected to increase the total addressable market (TAM) for Arbor to $750 million in 2008, and to $1.5 billion by the end of 2009.[8] In March 2009, Arbor worked with 100 ISPs to create a new network monitoring system, called ATLAS 2.0.[9] In October 2009, the company estimated that Google paid almost nothing for YouTube's bandwidth, noting that Google probably used dark fibre instead to run the website.[4]
On August 31, 2010, Tektronix Communications announced that it has completed its acquisition of Arbor Networks. Upon completion of the acquisition, Arbor Networks joins Danaher Corporation's portfolio of communications and enterprise companies, which includes Tektronix Communications.[1]
On September 3, 2013, Arbor Networks announced that it had acquired privately held Packetloop, a leader in Security Analytics based in Sydney, Australia.[10]