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Robertson Stephens Reiterates Buy Rating on
RBAK - Siara Systems Merger Viewed as
Excellent Strategic Fit -
SAN FRANCISCO--(BUSINESS WIRE)--Nov. 30, 1999--Robertson Stephens Managing Director and Senior
Communications and Networking Analyst Paul Johnson today reiterated his Buy rating on Redback Networks
(NASDAQ:RBAK - news). Redback Networks, headquartered in Sunnyvale, Calif., develops and markets
Subscriber Management Systems (SMS) that enable high-speed Internet-working over new-broadband
networks.
``We are reiterating our Buy rating on Redback Networks following the company's announcement on Monday
November 29, 1999 that it will merge with Siara Systems, a privately held next-generation networking
equipment vendor. Redback is expected to issue 31.3 million shares in the merger. The transaction is to be
completed as a purchase, rather than a pooling, and is expected to close during March 2000.'
``We believe this transaction will prove to be highly effective for both Redback and Siara,' said Johnson. ``The
strengths each company brings to the merger are complimentary, in our opinion, and the combination should
result in a much stronger company than either company separately.'
``In our view, Redback has been widely successful in defining and dominating a new segment of the networking
industry, called subscriber management,' said Johnson. ``To the combined entity, we believe Redback brings
very strong distribution through its world-class sales and support organization.'
``Siara Systems's products are also aimed at the access market, although the core technology supports higher
speed services than the current Redback product offering,' said Johnson. ``Although a young company, Siara
has already established a reputation as a company with exceptional engineering talent, in our view.' |
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