Alcatel to Acquire Packet Engines, a High-Performance Internet Technology Provider
BusinessWire, Monday, October 12, 1998 at 15:47
PARIS and SPOKANE, Wash.--(BUSINESS WIRE)--Oct. 12, 1998--Alcatel
(NYSE:ALA) and Packet Engines, Inc. today jointly announced that they
have entered into a definitive agreement under which Alcatel will
acquire Packet Engines, Inc. in a cash transaction. Packet Engines
delivers one of the highest performance wire-speed routing and Gigabit
Ethernet solutions available today. This acquisition is in line with
Alcatel's previously stated strategy to enter the IP market with
closely controlled technologies and to expand its presence in the U.S.
Packet Engines' product lines will also complement Alcatel's current
data and enterprise offering with high-end routers and Gigabit
Ethernet LAN switches.
Packet Engines will immediately benefit from Alcatel's worldwide
extensive presence on the enterprise and carrier markets. Packet
Engines' products will be sold in conjunction with Alcatel solutions,
such as SONET transmission systems, ADSL Internet hi-speed access
systems, broadband switching systems and PBXs.
The transaction has an implied value of $315 million, which
includes the equity purchase price as well as a Technology Development
Incentive Plan. The Incentive Plan will leverage Packet Engines'
outstanding IP know-how to develop new products broadening Alcatel's
networking solutions.
Following the acquisition of Packet Engines, the company will
retain its name and continue to be headquartered in the Spokane area.
Krish Prabhu, who is currently President and CEO of Alcatel USA, Inc.,
will serve as Chairman of the company, while Bernard Daines, founder
of Packet Engines, will remain CEO.
Krish Prabhu said: "Alcatel appreciates the importance of datacom
and IP technologies in today's telecom networks. This acquisition also
underscores our commitment to the US marketplace. We will integrate
Packet Engines' technologies in our offerings as we work towards
shaping the future of telecommunications networks."
"Packet Engines is excited to be a part of the Alcatel group. This
relationship will enable us to accelerate the development of our
products, and to better serve our customer base," commented Bernard
Daines. "The Spokane area has proven to be a great home for Packet
Engines, and the company is committed to continue growing its
presence. We anticipate substantial growth in all areas of the
company, especially engineering and sales."
Packet Engines, Inc. was founded in 1994 and is headquartered in
Spokane, WA, where it employs 200 people. The company develops
networking solutions for service provider, ISP and enterprise networks
delivering gigabit performance and mission-critical reliability. The
company provides a complete suite of high-performance gigabit
networking solutions including the PowerRail family of Gigabit
Ethernet switches, and G-NIC II network interface cards. The PowerRail
family delivers Infinite Routing(TM), mission-critical reliability,
and Application-Enabled Networking(TM). The PowerRail products began
shipping in the second quarter of 1998. These products represent the
industry's highest performance and most reliable suite of enterprise
routing switches, and are specifically designed to meet the growing
demands of enterprise network backbones and data centers.
Alcatel has significant worldwide positions in operator data
networks and a leading position in European enterprise data networking
integration.
Completion of the transaction is subject to approval by Packet
Engines' shareholders, the expiration or termination of applicable
waiting periods under the antitrust laws and other customary closing
conditions. The transaction is expected to close in approximately two
months.
A world leader in telecommunications systems and equipment, as
well as related cables and components activities, Alcatel operates in
over 130 countries. Alcatel provides complete solutions and services
to operators, service providers, enterprises and consumers, ranging
from backbone networks to user terminals. For further information on
Alcatel, please visit Alcatel on Internet: www.alcatel.com or the US
website at www.usa.alcatel.com
This document may include forward looking statements within the
meaning of safe Harbor provisions of the U.S. federal securities laws.
These statements are based on current expectations, estimates and
projections about the general economy and Alcatel's and Packet
Engines' lines of business and are generally identifiable by
statements containing words such as "expects", "believes", "estimates"
or similar expression. Statements related to future performance
involve certain assumptions, risks and uncertainties, many of which
are beyond the control of Alcatel or Packet Engines, and cannot be
guaranteed. Important factors that could cause actual results to
differ materially from those expectation include, among others,
foreign and domestic product and price competition, cost
effectiveness, changes in governmental regulations, general economic
and market conditions in various geographic areas, interest rates and
the availability of capital. Although Alcatel and Packet Engines
believe that their respective expectations reflected in any such
forward looking statements are based upon reasonable assumptions, they
can give no assurance that those expectations will be achieved.
CONTACT: Alcatel Contacts
Press Relations
HQ Press Office
Christophe Lachnitt
Tel: +33 (0)1 40 76 12 19
E-mail: christophe.lachnitt@alcatel.fr
or
US Press Office
Mark Burnworth
Tel: +1 972 996-59 86
E-mail: mark_a_burnworth@aud.alcatel.com
or
Investor Relations
HQ Office
Claire Pedini
Tel: +33 (0)1 40 76 13 93
E-mail: claire.pedini@alcatel.fr
or
Charlotte Laurent-Ottomane
Tel: +33 (0)1 40 76 13 30
E-mail: ottomane@alcatel.fr
or
US Office
Michael Haase
Tel: +1 972 519 68 55
or
Packet Engines Contacts
Press Relations
Don Reckles
Tel: +1 (509) 777-7312
E-mail: dreckles@packetengines.com
or
Investor Relations
Pete Price
Tel: +1 (509) 777-7242
E-mail: pprice@packetengines.com
KEYWORD: WASHINGTON NEW YORK
INDUSTRY KEYWORD: COMPUTERS/ELECTRONICS TELECOMMUNICATIONS COMED
MERGERS/ACQ
Today's News On The Net - Business Wire's full file on the Internet
with Hyperlinks to your home page.
URL: businesswire.com
Copyright 1998, Business Wire |
