Pass the beta blockers, the news is out! Welcome TimeStep and Northchurch to the NN family:
<<<
Newbridge Networks Unveils Groundbreaking IP Services Strategy
Company Announces Intent to Acquire IPSec Industry Leader TimeStep
Corporation and IP Edge Routing Technology Innovator Northchurch
Communications
KANATA, Ontario, ANDOVER, Massachusetts, August 25, 1999 ? Newbridge
Networks (NYSE: NN, TSE: NNC) today announced strategic Internet
protocol (IP) portfolio enhancements which offer service providers the
ability to generate revenue by delivering differentiated IP services.
The Company has completed negotiations for two acquisitions that will
combine industry-leading IPSec from TimeStep Corporation, of Kanata,
Ontario and innovative IP edge routers from Northchurch Communications
Inc., of Andover, Massachusetts. The move expands the addressable market
and greatly enhances the Company's ability to deliver innovative IP
services solutions.
According to Infonetics Research, Inc., a leading market research firm,
the IP-VPN services market will reach U.S. $11 billion by 2001. The
service provider edge market is expected to grow from U.S. $1 billion
today to U.S. $3 billion by 2002.
"Today's announcement introduces a solution for service providers to
move beyond simple IP transport to making money by offering
differentiated IP services," said Alan Lutz, president and chief
operating officer, Newbridge Networks. "It builds on our enhanced IP
service solution, which enables service providers to meet their
requirement to offer billable IP services that possess the quality of
service attributes essential for handling voice and video services."
?We are focused on hot growth markets with an eye to enabling carriers
to deliver revenue-generating services,? said Jim Arseneault, executive
vice president, IP & Internetworking Products Group, Newbridge
Networks. ?By entering the right markets at the right time, and
blending the best of IP and ATM, we can immediately address the
exploding markets for IP-VPNs and intelligent edge routers and
enable e-services."
With the commoditization of Internet connection services, carriers are
eager for innovative technology to help them launch new,
revenue-generating business and residential IP services. TimeStep's
IPSec technology, embedded into the Newbridge enhanced IP platforms,
provides a critical element in building secure IP-VPN solutions. The
Northchurch edge service router, a next generation programmable
platform, integrated into Newbridge?s rich service management suite of
products, enables the creation of personalized IP services, further
enhancing the intelligence of the edge router.
"TimeStep views this acquisition as a big win for both companies, but
more importantly it is a win for our customers," said Tim Hember,
president and chief executive officer, TimeStep Corporation. "Within
Newbridge, we will extend our industry-leading secure IP-VPN solutions
into global, geographically distributed secure services, while
continuing to develop the best IP-VPN technology into the next
millennium."
A pioneer in the secure IP-VPN industry, TimeStep has focused on
developing scalable and manageable secure IP-VPN solutions for network
service providers and large enterprises. TimeStep's flagship product
line recently won Network Magazine's "1999 Product of the Year" and
InfoWorld's "Golden Guardian Award". TimeStep has taken a strong
leadership role in the development of the IPSec standard. Its suite of
hardware gateways, software clients, and central management is the most
comprehensive solution for corporate intranets, extranets, and Internet
remote access.
"Newbridge Networks' global presence and managed network solution model
will strengthen TimeStep?s award-winning VPN offerings to partners such
as GTE Internetworking," said Robert McKinney, director of VPN and
Internet Security Services, GTE Internetworking. "The acquisition of
Timestep by Newbridge Networks affirms GTE Internetworking?s selection
of Timestep?s secure and scalable VPN technology as a key component of
our market-leading, managed VPN Advantage service."
The Northchurch platform provides industry-leading circuit aggregation
capacity, offering over 4000 T1s in a seven-foot rack. It is the only
edge solution capable of wire-speed traffic management and processing at
OC-48 line rates. Integration of this platform into the powerful
Newbridge management suite will afford service providers a highly
flexible solution supporting industry-leading QoS, traffic shaping, VPNs
and accounting combined with simplified policy management, traffic
monitoring, profiling and planning functionality.
?Combining Northchurch?s strength in IP routing with the strong presence
of Newbridge in carrier service management will, for the first time,
offer service providers the ability to deliver true carrier-grade IP
services to its customers,? said David Sawyer, president and chief
executive officer, Northchurch Communications.
?Service providers like SAVVIS/Bridge have been looking for a
system-level approach to IP services, offering high-capacity access,
flexible interfaces, and carrier-grade routing support. At the same
time, we want a solution that provides us with the ability to deploy
value-added services, such as IP-VPNs, traffic shaping, and intelligent
subscriber management,? said
Dr. Rick Bubenik, executive vice president and chief technology officer,
SAVVIS/Bridge. "Strengthened by the Newbridge management offering, the
Northchurch intelligent edge device gives Newbridge a unique market
opportunity, allowing it to introduce IP-based services with the service
quality associated with its ATM-based product offering.?
?Early on, Northchurch recognized the need to deliver both a next
generation router device and an IP-based service delivery platform, thus
maximizing the overall size of the market opportunity," said Michael
Howard, principal analyst, Infonetics Research, Inc. ?Northchurch?s
technology will result in new market opportunities and an increased
customer reach for Newbridge."
The total cost of the acquisitions to Newbridge is expected to be
approximately C$350 million, payable in cash over the next two years.
The acquisition costs include projected performance payments. The
Newbridge ownership position prior to the acquisitions was approximately
30 percent in each of TimeStep and Northchurch.
A take-over bid circular in connection with the TimeStep acquisition
will be mailed to TimeStep shareholders shortly. The acquisition has
been approved by the board of directors of Newbridge and is subject to
various closing conditions. The board of directors of TimeStep has
agreed to support the acquisition. The acquisition of Northchurch is
expected to close over the next week.
About Newbridge
Newbridge Networks designs, manufactures, markets and services wide area
networking solutions for Internet service providers; local,
long-distance, and wireless communications companies; cable television
carriers; and corporate customers in more than 100 countries. The
Company leverages its relationship with a growing family of Newbridge
Affiliate companies and strategic alliances with numerous other
networking companies to deliver complete, end-to-end solutions.
Newbridge customers include the world?s 350 largest telecommunications
service providers and more than 10,000 corporations, government
organizations and other institutions. Founded in 1986, the Company
employs more than 6,000 people on six continents. News and information
are available at www.newbridge.com.
- end -
Newbridge and logo are registered trademarks of Newbridge Networks
Corporation.
Newbridge Networks will be hosting a conference call on August 25, at
5:30 p.m. Eastern Daylight Time.
>>>> |
