Nortel Networks Corp., Brampton, ON has agreed to acquire San Jose, California-based Alteon WebSystems, Inc., a leader in content aware switching, for an estimated US$7.8 billion.According to a statem...
November 1, 2000
Nortel Networks Corp., Brampton, ON has agreed to acquire San Jose, California-based Alteon WebSystems, Inc., a leader in content aware switching, for an estimated US$7.8 billion.
According to a statement released by the company, this acquisition will allow Nortel to build what it calls “the next generation Internet data centre” by integrating Alteon’s switching products with its own service offerings in storage, gigabit switches, hosted application management/delivery and caching.
“In the new economy, the value and richness of content across the Internet is increasing on a massive scale,” said Clarence Chandran, Chief Operating Officer at Nortel. “Our acquisition of Alteon WebSystems will accelerate the delivery of an Internet data centre capable of moving content seamlessly and rapidly across high-performance optical Internet and 3G wireless networks.”
The transaction is scheduled for completion in the fourth quarter of 2000, at which time Alteon will become a wholly owned subsidiary of Nortel. Alteon will continue to be headquartered in San Jose, and its president and CEO, Dominic Orr, will become the president of Nortel’s Content Distribution Networks business unit.