Lucent Technologies to Acquire Nexabit Networks, A Leader In New
High-Speed Core Ip Switching/Routing Industry
biz.yahoo.com
Nexabit to Strengthen Lucent in IP Core Network Routing
MURRAY HILL, N.J., June 25 /PRNewswire/ -- Lucent Technologies today said it will acquire Nexabit Networks,
a privately held start-up developer of high-performance Internet Protocol (IP) wide area network (WAN)
switching/routing equipment, for about 14 million shares of Lucent common stock. Based on Lucent's closing share
price on Thursday, June 24, the transaction would be worth approximately $900 million.
Lucent expects the transaction to be completed by July 31, 1999. The merger, which will be accounted for as a
pooling of interests, is expected to be neutral to earnings in fiscal 1999 and fiscal 2000.
Nexabit, which is based in Marlborough, Mass., is an acclaimed designer of highly reliable, ultra-high-speed ''super
switches'' that operate at terabit rates -- that is, at one trillion bits or more per second -- for the next generation of
Internet and carrier-class packet networks.
''The communications revolution is fueling tremendous demand for more bandwidth in core networks,'' said Curt
Sanford, president, InterNetworking Systems, Lucent Technologies. ''This merger gives Lucent not only a leading
product for ultra high-speed IP core networks, but a terrific lead in delivering terabit-speed switch/routers that
connect directly to optical networking systems.''
''Now Lucent's data networking portfolio will include the leading IP core switch/router technology for
next-generation networking, the leading multiservice ATM technology delivering absolute quality of service, the
leading core optical networking technology, the leading software capabilities to integrate these networks together,
plus the unmatched capability to service and support it all,'' Sanford said. ''This sets a new standard for
internetworking capabilities for the industry.''
Lucent Technologies and Nexabit already have an agreement to integrate Lucent's leading Dense Wavelength
Division Multiplexing (DWDM) optical components into Nexabit products. The joint work will enable Nexabit
products to provide integrated switch routing of IP traffic directly onto a DWDM optical core network at an industry
leading OC192 standard rate of 10 gigabits per second per wavelength.
Mukesh Chatter, CEO and founder of Nexabit, will join Lucent as Advanced IP Core Technologies Vice-President,
in Lucent's InterNetworking Systems Group (INS).
''When we founded Nexabit, our goal was to deliver the leading multi-terabit-scale wide area networking products
to unlock the raw bandwidth created by today's optical networking technologies,'' Chatter said. ''This achievement is
a tribute to Nexabit's world class team and their extraordinary efforts. Now, working with Lucent and the unmatched
technical capabilities of Bell Labs, we have the opportunity to help revolutionize service provider networking
capabilities globally.''
Nexabit was founded in 1997 and employs more than 120 people. In its brief existence, Nexabit has received
significant honors and recognition from the industry, including selection in May to the Red Herring 100, the
magazine's annual list of top private and public technology companies. In June, Red Herring named Nexabit's
NX64000 Multi-Terabit Switch/Router as Best Product; and Data Communications Magazine named Nexabit as
one of 1998's Top 25 Hot Start-Up Companies.
Nexabit's NX64000 Multi-Terabit Switch/Router
Nexabit's NX64000 is the world's fastest Multi-Terabit Switch/Router, and the only system that can scale from
gigabit to 6.4 terabit per second speeds. Based on patented architectural innovations, the NX64000 not only has the
highest capacity switch fabric per chassis at 6.4 terabits per second, but also the highest port density per chassis
announced to date.
Unlike the current generation of IP switch routers, Nexabit's third generation product can support from OC3 to
OC192 and will scale to even higher speeds as customer demands continue to expand. The Nexabit switch/router
supports IP, ATM, and Frame Relay and MPLS. Nexabit's patented technology and support for an array of protocols
enables the product to manage quality of service (QoS) at line rates, even for OC48 and OC192 interfaces, thereby
supporting massive volumes of converged voice, video and data traffic.
The NX64000 has the lowest latency - i.e. the least amount of delay -- announced to date. Its predictable and
extremely low latency provides support for Constant Bit Rate (CBR) over IP, thus enabling the convergence of
voice/video/data over IP in the backbone.
This switch/router offers full redundancy, hardware hot-swap and in-service software upgrade, as well as direct
connection with DWDM optical networking systems.
The NX64000 is in beta trials with several service providers, including Frontier Communications, Road Runner and
OneNet.
Lucent's Data Networking Acquisitions
The merger of Lucent and Ascend, which was completed yesterday, makes Lucent the world leader in ATM and
Frame Relay data networking for service providers, as well as a world leader in network access technology.
The acquisition of Nexabit adds to Lucent's extensive IP capabilities. These include the Cajun Campus Gigabit
Ethernet Switch family, the PacketStar and GRF IP Switch families, the PathStar Access Server and Business Service
Exchange, the MAX and PortMaster remote access server families, the Pipeline access products and the Lucent
Technologies Softswitch, a growing portfolio of IP communications software offerings and the company's 7R/E
product portfolio.
As a part of its data networking portfolio, Lucent also offers industry- leading professional support services
capabilities through NetCare® Services, a broad set of consulting, integration, management and maintenance
services for multivendor data and video networks, voice systems and networks and call centers.
About Nexabit Networks
Based in Marlborough, Mass., Nexabit Networks designs and manufactures high-speed core switch/router
equipment for the backbones of the Carrier and Service Provider networks. The first in an emerging class of
super-switches, Nexabit's products scale far beyond today's conventional solutions and are based on a patented
architecture. Per chassis, the NX64000 delivers in a small footprint: the highest capacity, lowest latency, highest
density, superior QoS functionality, unmatched scaling power, high availability and industry leading carrier-class
reliability. The NX64000's unmatched capabilities enable service providers to increase revenues, offer real-time
services, and accommodate the ever-increasing bandwidth demands. Additional information can be found at
www.nexabit.com. |
