<A> Nokia Acquires Ipsilon Networking, Inc.
ESPOO, Finland--
Deal strengthens Nokia's data communications capabilities
Nokia will acquire Ipsilon Networking, Inc., a data communications company based in Sunnyvale, Calif., for approximately $120 million, subject to regulatory approval expected by end of the year.
Nokia has held a minority interest in Ipsilon since June. Ipsilon Networking is a leading innovator in the development of open Internet Protocol (IP) routing platforms.
"Wireless and data communications are clearly the key drivers as telecommunications markets become more open and increasingly global," said Matti Alahuhta, president of Nokia Telecommunications. "Adding Ipsilon's highly regarded IP capabilities to Nokia's established network expertise is an important step for us in further developing our competitiveness in IP networks."
Olli-Pekka Kallasvuo, executive vice-president, Nokia Americas, said the United States is leading the development of data communications, so having a strong data presence in the United States is highly beneficial to Nokia.
"The evolution to global standards in telecommunications is clearly being led by wireless and data communications in the U.S. market; the addition of Ipsilon is one further step in the expansion of Nokia's focus in the US market," Kallasvuo said.
Ipsilon pioneered the development of Internet Protocol (IP) switching, a technology that enables high-speed IP routing over ATM switching networks.
The company has strong competencies in IP technology and has developed innovative products in IP routing. Nokia will benefit from Ipsilon's IP and ATM competencies in fixed and mobile network products as broadband applications evolve.
The company, which has more than 100 employees, will become part of Nokia Telecommunications, the infrastructure arm of Nokia. Ipsilon's existing business relationships will continue under the Nokia brand.
"We will continue supporting our existing customer base and actively pursue new customers as part of Nokia's global team," said Brian NeSmith, Ipsilon president and chief executive officer. "We're very excited about this."
Headquartered in Finland, Nokia is a leader in digital technologies including mobile phones, cellular and fixed telecommunications networks, wireless data solutions and multimedia terminals. With sales in approximately 130 countries, net sales totalled FIM 39.3 billion ($8.5 billion) in 1996. Nokia employs more than 36,000 people in 45 countries.
Nokia's shares are listed in Helsinki, New York (NYSE), London, Stockholm, Frankfurt and Paris.
CONTACT: Nokia Telecommunications
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