Connections +

MACs (September 01, 2000)

LUCENT TO ACQUIRE SPRING TIDE NETWORKSLucent Technologies, Murray Hill, NJ has agreed to acquire Spring Tide Networks, a leading provider of Internet Protocol (IP) service network equipment for servic...

September 1, 2000  

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Lucent Technologies, Murray Hill, NJ has agreed to acquire Spring Tide Networks, a leading provider of Internet Protocol (IP) service network equipment for service providers.

Lucent will acquire the privately held Maynard, Massachusetts-based company in a stock transaction valued at about US$1.3 billion. This excludes the approximately 4 percent stake in Spring Tide that Lucent already owns.

The deal is expected to be completed by September 30, 2000 at which time Spring Tide will become part of Lucent’s InterNetworking Systems Group.


JDS Uniphase Corp., Nepean, ON, has announced it will open a new 42,000-square-foot manufacturing facility in Plymouth, England for the manufacturing of fused fiber components for optical networking systems.

The new facility will double the manufacturing space available to the company’s operations in Torquay, England, formerly known as SIFAM Fibre Optics Limited. Products manufactured at this site include fused couplers, pump-signal WDMs, tap couplers, Raman WDMs and gain flattening filters used in optical amplifier applications.

When acquired in November 1999, SIFAM had approximately 180 employees; by the end of calendar 2000, this business unit is expected to employ over 1,200 people at its locations in Torquay and Plymouth.


The Enterprise Networks Group soon to be spun off from Lucent Technologies has been given an official name: Avaya.

“We chose a name that would set us apart and capture what we’re doing with the company — focusing on communications solutions for business customers,” says Don Peterson, president and CEO. “Avaya sounds open and fluid- reflecting a company that’s open-minded and that provides seamless, effortless interconnections among people and businesses.”

According to the company, Avaya will focus on “enabling enterprises to succeed in the eBusiness age” by providing communications hardware, software and solutions. Lucent expects to complete the spin-off by the close of its fourth fiscal quarter of 2000, which ends September 30.

Separately, Avaya announced a global strategic alliance with Siebel Systems that includes joint development and integration of eBusiness solutions as well as joint marketing and sales teams.


Aiming to obtain a more competitive position in North America, Paris, France-based Legrand has acquired Wiremold of West Hartford, CT, a leading supplier of wire and cable management systems.

The US$770 million transaction will double Legrand’s size in the United States; this market will now represent 25 per cent of the company’s total sales, as compared to 13 per cent before the sale.

Legrand is a leader in low voltage fittings and accessories and has a presence in 54 countries.


In a move to further build its position as a leading optical layer company, Corning Inc. is pumping US$225 million into an expansion of Corning Lasertron. The move will increase the Corning, New-York-based company’s capacity for its amplification and transmission products, including pump lasers, transmission lasers and receivers.

In addition, Corning recently invested US$45 million to expand Corning Lasertron’s Oak Park facility in Bedford, MA and effectively double the existing capacity. The company says these two expansions will increase the existing capacity of Corning Lasertron products by six times over the next two years and will create approximately 1,150 new jobs.

The additional expansion will require the construction of a new factory; site selection will be determined in August 2000.


Cel-Loc, the Calgary, Alberta-based provider of wireless location-based technology, has announced it will spin off its network and services divisions into a new company called TimesThree.

TimesThree will deliver wireless location services to business partners and consumers. In addition, TimesThree unveiled its Calgary network, which the company says is the first live wireless location network in North America.

The new company will provide location sensitivity to e-commerce and m-commerce companies that are making wireless Internet available to mobile device users. TimesThree will continue existing business relationships with wireless Internet companies, in addition to offering its own services such as fleet tracking and asset tracking.

In addition to its Calgary network, TimesThree plans to launch networks in 42 American centres, offering the majority of cellular subscribers access to wireless Internet location services by the end of 2001.


Lucent Technologies, Murray Hill, NJ has announced it will spin off its microelectronics business, which includes the optoelectronics components and integrated circuits (IC) divisions, into a separate company.

Lucent is planning an IPO for up to 20 per cent of the new semiconductor company, and intends to spin off the remaining shares in a tax-free distribution. The IPO should take place by the end of the first quarter of 2001, and the spinoff should be completed by the summer of that year.

“The communications infrastructure and semiconductor markets have become so big, so fast-moving and so competitive that it is time to divide in order to accelerate growth,” says Richard McGinn, Lucent Technologies chairman and CEO. He says the best way to excel in these markets is through two “more focused and agile companies.”


Toronto-based GT Group Telecom Inc. has acquired the competitive local exchange carrier (CLEC) and commercial telecommunications businesses of Cable Atlantic Inc., the largest provider of cable television and Internet services in Newfoundland.

The deal will combine the telecommunications business unit of Cable Atlantic with Group Telecom in a cash and stock transaction valued at approximately $57 million, including $40 million in property, plant and equipment.

The transaction will include approximately 390 route kilometres (8,732 fibre kilometres) in Newfoundland. Also included are Cable Atlantic’s Nortel DMS500 voice switch and 99 on-net buildings. As a result of the deal, Group Telecom will have 8,887 kilometres (162,684 fiber kilometres) and over 1,400 buildings on its national fiber-optic network.


The Wiremold Company of West Hartford, CT has acquired Chicago-based HOMACO, Inc., a leading manufacturer of telecommunications products, including equipment racks, cross connect systems and terminal blocks.

According to Art Byrne, president and CEO of Wiremold, the addition of HOMACO’s telecommunications systems will complement Wiremold’s own Interlink cabling system. He says the combination will allow them to provide a full range of copper and fiber optic connectivity solutions “from the closet or panel to the workstation.”

HOMACO will continue to operate from its location in Chicago, and will use its current sales and distribution network.


Cygnal Technologies Corp., Oshawa, ON has completed the acquisition of Accord Communications Inc., a provider of telecom infrastructure systems and services.

According to the company, this move enhances Cygnal’s ability to provide advanced enterprise-wide solutions that address the market for wired and wireless communication networks.

“With Accord’s expertise in voice and data communications, as well as IP telephony, we can now provide the complete range of communication solutions to our customers, says Doug Young, president and CEO of Cygnal, “including wired and wireless systems both inside and outside the customers’ premises.”

Cygnal Technologies designs, equips and integrates advanced wired and wireless high-speed networks to transmit voice, video and data.


In a move to “fill a strategic gap in its natio
nal wireless footprint,” AT&T Wireless Group Inc. of New York says it has agreed to buy SBC Communications Inc.’s Indianapolis wireless system in a deal valued at US$530-million.

With the acquisition, AT&T Wireless will add more than 113,000 subscribers and have access to a market reaching more than three million. The company, which will add about 100 employees as a result of this deal, says it plans to sell Digital PCS phones in Indianapolis. The deal is expected to close before the end of 2000.

Earlier this year, AT&T Wireless acquired, or announced plans to acquire, wireless systems in San Francisco, San Diego, Houston and Florida.


JDS Uniphase Corp., Nepean, ON and SDL, Inc., San Jose, CA have agreeed to merge in a transaction valued at approximately $41 billion. Once the transaction is completed, SDL will operate as a wholly-owned subsidiary of JDS Uniphase.

The companies say the merger will facilitate the creation and deployment of high-capacity, flexible optical networks by accelerating the delivery of products and building blocks of optical networks. These include optical amplifiers, lossless optical switches and integrated optical modules.

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