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Alcatel buys Newbridge for $7.1 billion

French telecommunications equipment maker Alcatel has made a definitive agreement to buy ATM WAN market leader Newbridge Networks Corp. of Kanata, ON, in a merger valued at US$7.1 billion.When the acq...


March 1, 2000  


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French telecommunications equipment maker Alcatel has made a definitive agreement to buy ATM WAN market leader Newbridge Networks Corp. of Kanata, ON, in a merger valued at US$7.1 billion.

When the acquisition is complete, Newbridge will merge with Alcatel’s Carrier Data Division (CDD) to form the new Carrier Internetworking Division (CID). Pearse Flynn will head the expanded team as President of Alcatel’s Carrier Internetworking Division. He will also be appointed CEO of Newbridge.

The new division will be headquartered in Kanata, and is expected to have combined annual sales of more than US$ 2.5 billion (on a proforma basis).

“Alcatel is making a major move to become a world-wide leader in new generation networks, which will handle the explosive growth of data with the appropriate quality of service (QoS), said Serge Tchuruk, Alcatel’s Chairman and CEO. “This acquisition combines Alcatel’s leading position in fast Internet access with Newbridge’s strong ATM multiservice capabilities.”

The deal will allow Alcatel to accelerate its growth in the broadband networking market. Alcatel will leverage Newbridge’s lead in the ATM/IP multiservice edge market to provide a solutions for managed enhanced services using DSL access technology.


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