Sycamore Announces Revised Agreement to Acquire Access Solutions Provider Eastern Research
Thursday August 3, 5:45 pm ET
CHELMSFORD, Mass.--(BUSINESS WIRE)--Aug. 3, 2006--Sycamore Networks, Inc. (NASDAQ: SCMR - News) today announced that it has entered into a revised definitive agreement to acquire Allen Organ's majority-owned subsidiary, Eastern Research, Inc., an innovative provider of network access solutions for wireline, wireless, and private network operators. Under the terms of the revised agreement, the total consideration to be paid to Allen Organ shareholders and the minority shareholders of Eastern Research to acquire Eastern Research will be $80 million in cash. The original agreement between Sycamore and Allen Organ dated April 12, 2006 contemplated a $92.5 million transaction, comprised of approximately $84.5 million in Sycamore stock and $8 million in cash, based on trailing average closing prices of Sycamore's stock at the time. The boards of both companies approved the revised agreement.
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The acquisition of Eastern Research will enable Sycamore to expand its customer base and offer a more comprehensive suite of solutions optimized for emerging broadband networks. Sycamore continues to expect the transaction to be accretive within 12 months of closing, exclusive of purchase accounting adjustments and other one-time merger-related charges. The transaction is subject to certain closing adjustments and conditions, including approval by the shareholders of Allen Organ. The transaction is expected to close in September 2006. Other aspects of the transaction previously disclosed in the Company's April 12, 2006 announcement, including the corporate reorganization of Allen Organ to spin off to newly-formed entities the assets and operations not related to Eastern Research prior to closing remain substantially unchanged.
About Sycamore Networks
Sycamore Networks, Inc. (NASDAQ: SCMR - News) is a leading provider of intelligent optical switching products for telecommunications service providers worldwide. The Company's products form the reliable foundation for some of the world's most respected and innovative communications networks. Sycamore's fully integrated edge-to-core optical switching solutions enable network operators to efficiently and cost-effectively provision and manage optical network capacity to support a wide range of voice, video, and data services. For more information, please visit www.sycamorenet.com.
About Eastern Research
Eastern Research, Inc. is a leading supplier of network access solutions and has thousands of systems deployed worldwide. The Company's products enable wireline, wireless and private network operators to rapidly deploy multiple service offerings, leverage existing infrastructure investments, scale as network growth occurs, and manage service delivery reliably and cost-effectively. |
