Lucent Technologies Completes Acquisition of Assets of Riverstone Networks, a Maker of Carrier Ethernet Routers
APRIL 27, 2006, MURRAY HILL, N.J. – Lucent Technologies (NYSE: LU) today announced that it has completed its acquisition of certain net assets related to the business operations of Riverstone Networks, a maker of carrier Ethernet routers for the telecommunications industry.
The sale conditions are set forth in a definitive asset purchase agreement initially entered into among the parties on Feb. 7 that was amended following an auction of those assets. The purchase price under the amended agreement is approximately $207 million, subject to purchase price adjustments in accordance with the Asset Purchase Agreement. Lucent received Federal Trade Commission approval for the purchase on March 17.
“We are excited to integrate the Riverstone team into Lucent,” said Ken Wirth, president and general manager, Multimedia Networking Solutions, Lucent Technologies. “With this purchase we have created an industry leader in the delivery of end-to-end carrier Ethernet and converged Optical/Ethernet solutions, and we look forward to aggressively pursuing the expanding market for Ethernet-based business services and residential triple-play offerings such as IPTV.”
The integration of the Riverstone assets into Lucent’s portfolio is expected to result in substantial benefits in other areas of Lucent’s business. For instance, Riverstone’s carrier Ethernet platforms augment Lucent’s industry-leading IP Multimedia Subsystem (IMS) solution, enabling operators to leverage end-to-end, Ethernet-based architectures that support the delivery of business and residential broadband services at lower cost with superior quality of service, performance and reliability.
The assets purchased primarily include Riverstone products, intellectual property, certain contracts and receivables and tangible long-lived assets. The net assets purchased do not include, among other things, cash, investments and debt. Substantially all of Riverstone’s 400 employees are now employees of Lucent.
About Lucent Technologies
Lucent Technologies designs and delivers the systems, services and software that drive next-generation communications networks. Backed by Bell Labs research and development, Lucent uses its strengths in mobility, optical, software, data and voice networking technologies, as well as services, to create new revenue-generating opportunities for its customers, while enabling them to quickly deploy and better manage their networks. Lucent’s customer base includes communications service providers, governments and enterprises worldwide. For more information on Lucent Technologies, which has headquarters in Murray Hill, N.J., USA, visit http://www.lucent.com.
This news release contains forward-looking statements that are based on Lucent Technologies’ current expectations, estimates, and beliefs about the results of its purchase of certain assets and business of Riverstone Networks, Lucent’s ability to successfully integrate and operate that business and the future performance of that business. These forward-looking statements speak only as of the date of this release and are subject to risks and uncertainties that may cause actual results to differ materially. These risks and uncertainties include the successful and timely integration of the acquired assets into Lucent’s business, unforeseen technical issues, the retention of key personnel and acceptance of Lucent’s product and service offerings, along with those risks and uncertainties detailed from time to time in Lucent’s SEC reports, including the reports on Forms 10-K and 10-Q. Except as required under the federal securities laws and the rules and regulations of the SEC, Lucent does not have any intention or obligation to update publicly these forward-looking statements, whether as a result of new information, future events, changes in assumptions, or otherwise.
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