>> Nokia Ramps Up
Evan Blackwell
TelecomClick
Dec 7 2000
Nokia expanded its portfolio of network security and broadband access solutions into the SOHO market on Thursday by agreeing to buy Silicon Valley startup Ramp Networks for an undisclosed sum.
Under the arrangement announced this week, Nokia has 10 business days to commence a cash tender offer for all of Ramp’s stock at a price of $5.80 a share. The deal won’t be closed until 51 percent of the Ramp shares are tendered. The holders of 36 percent of the shares have already agreed to the Nokia offer.
Nokia entered the network security market about two years ago, and targeted medium and large enterprises. According to Dan McDonald, Nokia’s vice president of Internet communications, the small office expertise brought to the table by Ramp was exactly what Nokia was looking for in a partner.
"The synergies between the two companies existed on every level," McDonald said."They have a very strong R&D team here in Silicon Valley and in India. They give us the ability to extend our reach."
Ramp’s flagship products, the WebRamp family, have been an award-winning group of Internet security and broadband access devices. The WebRamp can be deployed through resellers or ISPs and it offers small enterprise customers VPN and firewall services, and is available for DSL, cable and ISDN access.
"The channels and brand name that Nokia brings, along with the competencies that Ramp brings, are a great fit," said Mahesh Veerina, the president and CEO of Ramp. "We’re looking forward to joining the Nokia team." <<
- Eric - |
