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To: whitephosphorus who wrote (15058)	8/13/1999 1:38:00 PM
From: Linkdog	Respond to of 42804

Another one is gobbled up.... Lucent To Buy Router Maker Xedia For $246 Million In Stock August 13, 1999 MURRAY HILL, N.J. -(Dow Jones)- Continuing its buying spree, telecommunications-equipment powerhouse Lucent Technologies Inc. said Friday it agreed to acquire Xedia Corp., a developer of Internet-access routers for wide area networks, for about $246 million in stock. The deal calls for Lucent (LU) to issue 3.86 million shares for all outstanding shares of privately held Xedia, a 90-person company based in Acton, Massachussetts. The deal's $246 million value is based on Lucent's Thursday closing price of $63.75. Like Lucent's Tuesday bid for computer-networking company International Network Services, the deal is expected to further bolster Lucent's expertise in data networking. As data and phone networks get ever more similar, Lucent has pushed aggressively into the market for linking computer networks. Xedia makes high-performance routers for next-generation, Internet Protocol-based virtual private networks used by corporations and service providers. The firm's customers include MCI Worldcom Inc., PSINet Inc., Concentric Network Corp. and Sprint Corp. Lucent said it will name Xedia's Chairman Ashley Stephenson vice president and chief technology officer of its enterprise WAN systems group. Xedia's President Robert Steinkrauss will be named vice president and general manager of the same unit. Spun off from AT&T Corp. in 1996, Lucent comprises AT&T's old manufacturing arm and its Bell Laboratories unit. Lucent has acquired more than a dozen data-networking companies in the past 18 months to bolster its ability to develop equipment that delivers data traffic more efficiently. Earlier this week, Lucent said it would acquire INS for about $3.6 billion in stock. Sunnyvale, Calif.-based INS designs and installs network systems for corporations. The acquisition follows Lucent's $24 billion purchase of Ascend Communications Inc., completed in June, and its $972 million acquisition of closely held Nexabit Networks Inc., also in June. Both of those companies also specialize in computer-networking equipment. Lucent expects the Xedia deal, which will be completed in the fiscal first quarter ending Dec. 31, to be neutral to earnings in the fiscal year ending Sept. 30, 2000.