Another slant on the Cambrian Sale (Haven't seen this posted yet, my apologies if I missed it...)
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Wednesday, December 9, 1998
Nortel to buy Cambrian Systems for up to $300M US
TORONTO (CP) -- Nortel Networks is paying up to $300 million US cash ($460 million Cdn) to buy Cambrian Systems Corp. of Kanata, Ont., and its high-speed Internet technology.
Newbridge Networks owns 40 per cent of Cambrian, Newbridge chairman Terry Matthews about 25 per cent and dozens of smaller shareholders the rest.
Nortel Networks, a division of giant Northern Telecom, said today a portion of the purchase price will be contingent on Cambrian Systems achieving certain business objectives.
The acquisition, expected to close within 30 days, comes three months after the acquisition of data networking leader Bay Networks.
"This is another investment in our strategy to usher in a new era of networking," said John Roth, vice-chairman and chief executive of Nortel Networks.
"With the acquisition of Cambrian Systems, we're speeding up the on-ramps to the Internet backbone. By eliminating the bottleneck between metropolitan networks and the high-speed fibre-optic backbone, we will enable higher speeds and higher reliability with bigger bandwidth and lower-cost networking."
Nortel Networks will combine its optical technology with Cambrian Systems' OPTera product line. The new technology provides cost benefits as high as 30 per cent, Nortel said.
Cambrian Systems, with about 170 employees primarily based in Canada, will continue to be based in Kanata, with additional resources from Nortel Networks.
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