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MACs (May 01, 2001)

AVAYA OUTSOURCES MANUFACTURING TO CELESTICAAvaya Inc. of Basking Ridge, NJ says it will outsource most of the manufacturing of its communications systems and software to Toronto-based Celestica Inc., ...


May 1, 2001  


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AVAYA OUTSOURCES MANUFACTURING TO CELESTICA

Avaya Inc. of Basking Ridge, NJ says it will outsource most of the manufacturing of its communications systems and software to Toronto-based Celestica Inc., a leader in the electronics manufacturing services industry.

The company says the move will, in part, allow it to reduce inventories, fixed costs and capital expenditures. In addition, Avaya will receive approximately US$200 million for the assets it is transferring to Celestica.

Under terms of the strategic manufacturing agreement, which is worth approximately US$4 billion over its five-year term, Avaya will outsource the manufacturing of its large business systems in Westminster, CO, along with the operation of its repair and distribution facilities in Little Rock, AR.

Celestica will manufacture in its other facilities the small business systems that Avaya currently makes in Shreveport, LA. The Shreveport operation will be phased out by the end of the fiscal year.

About 1,400 Avaya employees are expected to join Celestica as part of this transaction, which is expected to close in phases beginning in the third fiscal quarter of 2001.

CORNING CREATES BUSINESS GROUP

Corning Cable Systems of Corning, NY has opened the doors to a new business group that will be dedicated to supplying contract optical manufacturing services to its customers.

The company says its new optical Manufacturing Services (OMS) group was created to provide customers with a range of optically-focused contract manufacturing services — from supply chain management to final product testing.

The OMS group will manage all aspects of the manufacturing process, including product fabrication, testing and packaging. In addition, the group will offer a portfolio of optical components.

DBA TELECOM ACQUIRES VOIP PROVIDER

In a move designed to position itself for growth in the next-generation telephony market, dba Telecom Corp. of North Vancouver, BC has entered into an agreement to acquire e-tel corporation, of West Warwick, RI, a leader in Voice over Internet Protocol (VoIP) technology.

This will be the third acquisition the company has made to establish itself in the VoIP industry. Earlier this year, dba Telecom acquired technology rights from Altel Inc., a VoIP developer in Japan, and Dial Digital Inc., a telephony and VoIP equipment supplier for the small office and consumer markets.

The companies are currently in strategic discussions with several network providers to supply VoIP equipment. dba will also engage in a round of financing and will be seeking private placements totalling $4.5 million in order to grow the company.

FLUKE TAKES ON FOTEC

Fluke Networks, Inc. of Everett, WA has recently announced the acquisition of Fotec, the Medford, Massachusetts-based provider of fiber optic test equipment and structured cabling education.

Under the agreement, Fluke Networks will acquire all products and technology, and hire all people associated with the company.

The purchase will serve as an expansion to Fluke’s fiber-optic systems for the testing and certification of fiber optic networks. It also incorporates Fotec’s web-based “Fiber U” and “Wire U” programs and conferences with Fluke’s own training programs.

IDEAL ACQUIRES WAVETEK’S LAN DIVISION

Ideal Industries of Sycamore, IL has expanded its datacom business by acquiring the LAN Division of Wavetek, San Diego, CA — a leader in LAN certification testing of data networks.

According to Robert N. Lane, Ideal’s CEO, this acquisition adds certification testing products which strengthen the company’s line of datacom testers. Ideal manufactures tools and supplies for installation professionals in construction, maintenance, data communications and original equipment manufacturing industries.

This is the second acquisition announced recently by Ideal, which also acquired Anderson Power Products, a manufacturer of power connectors headquartered in Sterling, MA.

GROUP TELECOM COMPLETES TRANSACTION WITH C1

Toronto-based telecom provider GT Group Telecom Inc. has completed the acquisition of C1 Communication Inc.’s Atlantic Canada assets and business. The transaction was originally announced on October 16, 2000.

The company has acquired C1’s Atlantic Canada competitive local exchange carrier (CLEC) business, including its fiber-optic network, “on net” buildings, related assets, customers and employees.

The transaction includes approximately 44,400 fiber kilometres in Nova Scotia and New Brunswick and 116 “on-net” buildings.

COMPANIES JOIN MGE IN NEW ALLIANCE

MGE UPS Systems of Costa Mesa, CA, a leader in the power protection arena, has announced the formation of its Facility Solutions Alliance (FSA), which it says was created to support mission-critical networks and facility operations with power, environmental control and monitoring systems.

MGE says this new alliance, which includes Albercorp, Cummins Onan, EFI, PowerLogic, Square D and Stulz, brings together a variety of companies into one group to provide systems for data, voice and video communications operations. The Alliance aims to be a single point-of-contact for one-stop facility design, integration, purchasing and service.

SIEMON ACQUIRES FIBER OPTIC DIVISION OF ACA

The Siemon Company of Watertown, CT has announced its acquisition of the fiber optic division of Advanced Custom Applications (ACA) Inc.

ACA, located in Belle Mead, NJ, is a leading manufacturer of fiber splice products. The company holds a variety of patents in fiber optic connection technology, including mechanical splice and fusion splice sleeves.

Siemon has acquired ACA’s intellectual property, manufacturing capabilities and inventory.CS


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