Newbridge Networks and Stanford Telecom Renegotiate
Acquistion
KANATA, ONTARIO--SUNNYVALE, CALIFORNIA--Acquisition Secures Access
to High Speed TDMA Technology For Newbridge(r) LMDS and MMDS
Solutions; Strengthens Leadership in Explosive Broadband Wireless
Market
Newbridge Networks (NYSE: NN; TSE: NNC) today announced it has
renegotiated the definitive agreement to acquire Sunnyvale,
California-based Stanford Telecom (Nasdaq: STII), a leading
supplier of key broadband wireless technology and products.
The boards of directors of Newbridge Networks and Stanford
Telecommunications approved the renegotiated agreement and plan of
merger today, by which Newbridge will purchase all of the
outstanding common stock of Stanford Telecom. Under the agreement,
Newbridge will pay Stanford Telecom stockholders US$34.22 for each
common stock of Stanford Telecom. Newbridge will be withdrawing
its registration statement and not issuing any additional shares.
Newbridge will pay for the acquisition from its existing cash
balance.
The special meeting of Stanford Telecom shareholders scheduled for
November 15, 1999 will be rescheduled for the second week of
December 1999. The exact date will be announced once the proxy
statement is cleared by regulatory authorities.
"Our acquisition of Stanford Telecom helps Newbridge to
immediately address the massive global market opportunity for
broadband wireless," said Pearse Flynn, president and chief
operating officer, Newbridge Networks. "Newbridge and Stanford
have enjoyed a close relationship for the past two years. Stanford
Telecom's industry leading high speed TDMA technology is now
integrated into the comprehensive Newbridge broadband wireless
solutions. This technology contributes significantly to
differentiating our solutions from the competition and reinforces
our lead in the broadband wireless market."
After proceeds from the divestiture of unrelated businesses, the
acquisition is expected to have a net cost to Newbridge of
approximately US$240 million. The parties expect the transaction
to close in December 1999, following the approval of Stanford
Telecom shareholders. The transaction will be accounted for under
the purchase method of accounting.
Newbridge retains the Wireless Broadband Products (WBP) and
Satellite Personal Communications (SPC) groups of Stanford
Telecom. The Newbridge wireless development team in Sunnyvale
becomes part of a center of excellence for broadband wireless
technologies, including the development of multiple access
wireless modems, highly integrated subscriber units and custom
ASICs.
Stanford Telecom designs, manufactures and markets advanced
digital communications products and systems to establish or
enhance communications via terrestrial wireless, satellites and
cable. Stanford Telecom's technical strengths include: system
design, communication waveforms, modulation and demodulation
techniques, ASIC design, radio frequency (RF) antennas and
converters, software and firmware, asynchronous transfer mode
design and advanced manufacturing techniques and processes.
Stanford Telecom was founded in 1973 and maintains headquarters in
Sunnyvale, California. News and information are available at
www.stelhq.com.
Newbridge Networks designs, manufactures, markets and services
wide area networking solutions for Internet service providers;
local, long-distance, and wireless communications companies; cable
television carriers; and enterprise customers in more than 100
countries. The Company leverages its relationship with a growing
family of Newbridge Affiliate companies and strategic alliances
with numerous other networking companies to deliver complete,
end-to-end solutions. Newbridge customers include the world's 350
largest telecommunications service providers and more than 10,000
corporations, government organizations and other institutions.
Founded in 1986, the Company employs more than 6,000 people on six
continents. News and information are available at
www.newbridge.com.
Newbridge and logo are registered trademarks of Newbridge Networks
Corporation.
Stanford Telecom and Stanford Wireless Broadband are registered
trademarks of Stanford Telecommunications Inc. |
