Lucent Technologies today announced it has completed its acquisition of certain net assets related to the business operations of Riverstone Networks, a maker of carrier Ethernet routers for the telecommunications industry.
The sale conditions are set forth in a definitive asset purchase agreement initially entered into among the parties on Feb. 7, that was amended following an auction of those assets. The purchase price under the amended agreement is approximately $207 million, subject to purchase price adjustments in accordance with the Asset Purchase Agreement. Lucent received Federal Trade Commission approval for the purchase on March 17.
"With this purchase, we have created an industry leader in the delivery of end-to-end carrier Ethernet and converged Optical/Ethernet solutions, and we look forward to aggressively pursuing the expanding market for Ethernet-based business services and residential triple-play offerings such as IPTV," said Ken Wirth, president and general manager of multimedia networking solutions at Lucent Technologies.
The integration of the Riverstone assets into Lucent's portfolio is expected to result in benefits in other areas of Lucent's business. For instance, Riverstone's carrier Ethernet platforms augment Lucent's IP Multimedia Subsystem (IMS) solution, enabling operators to use end-to-end, Ethernet-based architectures that support the delivery of business and residential broadband services at lower cost with superior quality of service, performance and reliability, said Lucent.
The assets purchased primarily include Riverstone products, intellectual property, certain contracts and receivables and tangible long-lived assets. The net assets purchased do not include, among other things, cash, investments and debt. Substantially all of Riverstone's 400 employees are now employees of Lucent.
Lucent Technologies www.lucent.com
Riverstone Networks www.riverstonenet.com
