Zhone doesn't compete with solutions devised by Lu due to non-compete agreement
Zhone Raises $500 Million For The "Final Mile"
OAKLAND. CALIFORNIA, U.S.A., 1999 OCT 21 (NB) -- By Martin Stone,
Newsbytes. A start-up headed by two former Ascend Communications Inc.
executives has reportedly raised $500 million from investors and plans to put the
capital into competing in what is known as the "final mile" of networking.
According to a report in today's Wall Street Journal, Oakland. Cal.- based Zhone
Technologies Inc., said it will use about $150 million each from investors Kohlberg
Kravis Roberts & Co. and Texas Pacific Group Inc., and $75 million from New
Enterprise Associates, among others to make strategic buy-outs in a bid to win the
race in the highly- competitive "final mile" market.
Zhone reportedly plans to focus its efforts on solving the "final-mile" problem in
networking, which involves delivering high-capacity computer connections to homes
and small businesses. The company plans to attack the emerging market with an
entirely new approach that does not compete with solutions devised by Lucent
Technologies Inc. [NYSE:LU] with which Zhone has a non-compete agreement
following that company's buy-out of Ascend for $19 billion last January.
Zhone was founded by Mory Ejabat, Ascend's former chief executive, and Jeanette
Symons, an Ascend co-founder and former chief technical officer, and is reportedly
currently negotiating with Premisys Communications Inc. [NASDAQ:PRMS] of
Fremont, Calif., a maker of networking products, according to the Journal.
Reported by Newsbytes.com, newsbytes.com |
