TELLABS MAKES ITS BUY!!!!
Tellabs to acquire NetCore Systems for $575 mln
LISLE, Ill., June 30 (Reuters) - Telecommunications
equipment maker Tellabs Inc. <TLAB.O> said on Wednesday it had
agreed to buy NetCore Systems Inc. in an all-stock deal valued
at about $575 million.
Tellabs said it expected the purchase of the Wilmington,
Mass.-based developer of carrier-class IP routing and ATM
switching solutions will be one to two cents dilutive to
earnings per share in 1999, and neutral to slightly accretive to
profits in 2000.
The acquisition of privately-held NetCore will accelerate
Tellabs' ability to help service providers build a
next-generation, multiservice network that integrates data,
voice and video, called the new public network, Tellabs said.
"NetCore's technology will complement Tellabs' line of
optical networking, managed access and transport systems to
accelerate delivery of a broad range of multiservice IP- and
ATM-based solutions," the company said in a statement.
NetCore has 85 employees, including more than 60 engineers,
at its Wilmington, Mass. headquarters and Atlanta and Denver
sales offices.
Shares of Tellabs closed up 3-9/16 on Tuesday at 69-3/8 on
the Nasdaq Stock Market. |
