Nortel Networks Completes Acquisition of JDS Uniphase's Zurich,
Switzerland-based Subsidiary
BOSTON, Feb 13, 2001 (BUSINESS WIRE) -- Nortel Networks Corporation (NYSE: NT chart, msgs)(TSE: NT. chart, msgs) today announced that it has completed its acquisition of JDS Uniphase's Zurich, Switzerland-based subsidiary and related assets in Poughkeepsie, New York.
The acquisition, which was originally announced on February 6, 2001, has resulted in Nortel Networks issuing today approximately 65.7 million of its common shares to JDS Uniphase. Up to an estimated additional US$500 million will be payable after December 31, 2003 in common shares of Nortel Networks to the extent it does not meet certain purchase commitments from JDS Uniphase by that date.
"This is a critical step in our effort to unleash the full potential of our high-performance optical component solutions business," said Clarence Chandran, chief operating officer, Nortel Networks. "This acquisition really strengthens Nortel Networks leadership position in high-performance optical components and modules which are essential to delivering the all-optical Internet."
Nortel Networks High-Performance Optical Component Solutions business is one of the largest and fastest growing optical component and module businesses globally. The business is a world leader in the design, development and manufacture of high-value modules for the Optical Internet, including those for 10 and 40 gigabits per second systems. It has established industry leadership and competitive differentiation by translating the art of invention and design into volume manufacturing of components and modules that are at the heart of the high-performance Internet. It has estimated pro forma 2000 revenues of US$2.425 billion based on market prices and approximately 8,900 employees and contractors located primarily in Harlow and Paignton, United Kingdom; Ottawa, Ontario; Boston, Mass. and Raleigh, NC; and Sydney, Australia.
Nortel Networks is a global Internet and communications leader with capabilities spanning Optical, Wireless, Local, Personal Internet and eBusiness. The Company had 2000 U.S. GAAP revenues of US$30.3 billion and serves carrier, service provider and enterprise customers globally. Today, Nortel Networks is creating a high-performance Internet that is more reliable and faster than ever before. It is redefining the economics and quality of networking and the Internet, promising a new era of collaboration, communications and commerce. Visit us at www.nortelnetworks.com.
Certain information included in this press release is forward-looking and is subject to important risks and uncertainties. The results or events predicted in these statements may differ materially from actual results or events. Factors which could cause results or events to differ from current expectations include, among other things: the impact of price and product competition; the dependence on new product development; the impact of rapid technological and market change; the ability of Nortel Networks to make acquisitions and/or integrate the operations and technologies of acquired businesses in an effective manner; general industry and market conditions and growth rates; international growth and global economic conditions, particularly in emerging markets and
including interest rate and currency exchange rate fluctuations; the impact of consolidations in the telecommunications industry, the uncertainties of the Internet; stock market volatility; the ability of Nortel Networks to recruit and retain qualified employees; the ability to obtain timely, adequate and reasonably priced component parts from suppliers and internal manufacturing capacity; and the impact of increased provision of customer financing by Nortel Networks. For additional information with respect to certain of these and other factors, see the reports filed by Nortel Networks with the United States Securities and Exchange Commission.
Nortel Networks disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Nortel Networks, the Nortel Networks logo and the Globemark are trademarks of Nortel Networks.
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