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Technology Stocks : Nortel Networks (NT) -- Ignore unavailable to you. Want to Upgrade?

To: Techplayer who wrote (4760)	2/9/2000 2:40:00 PM
From: telecomguy	Read Replies (1) \| Respond to of 14638

Wednesday, February 09, 01:18 pm, EST OTTAWA (Reuters) - Nortel Networks Corp., a leading communications equipment vendor, is buying privately held Dimension Enterprises Inc. of Herndon, Va. for $65 million, the Washington Post reported Wednesday. The deal is expected to be announced at a press conference Nortel is hosting Wednesday. No company officials were immediately available for comment. The Post reported that Dimension consults for such companies as AT&T Corp. on the design and support of Internet data centers. Dimension announced in August its data center service, which provides services to the centers that house servers, routers and storage used in Internet communications and electronic commerce. Some analysts expect the data center market to be worth $12 billion a year by 2002. Such an acquisition would well position Nortel to take advantage of a burgeoning market, said Truc Do, analyst at SoundView Technology Group. ``The area of data centers for Internet hosting and co-location is going to be explosive. That's where the growth area is right now,' said Do. A source close to the deal told Reuters Tuesday that the purchase would bolster Nortel's new services division, which deals with the sale and rental of software over the Internet. Nortel said Tuesday its announcement would relate to ``new opportunities to make the Internet more profitable for businesses and service providers'. Dimension offers high-end engineering and consulting services to global telecommunications, technology manufacturers and multinational companies. It is credited with building one of the first global Internet backbones, the company said. Dimension, which had 1999 income of $5 million on revenue of $18 million, has 100 employees, the Post also reported.