Lucent to Acquire Yurie Systems
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Lucent Technologies, in a move the company said is aimed at filling a key space in its data networking offerings, today announced it will acquire ATM provider Yurie Systems, Inc. for approximately $1 billion in cash.
Expected to be finalized by June 30 of this year, the agreement calls for Lucent to begin a cash tender offer for all outstanding shares of Yurie common stock for $35 a share.
Shareholders holding more than 50% of Yurie's common stock on a fully diluted basis have agreed to tender Yurie stock. Shares that are not purchased in the offer will be acquired for the same price in cash in a second-step merger.
Landover, MD-based Yurie delivers ATM wide area network (WAN) access equipment to service providers, companies, and government organizations. Customers have included AT&T, Sprint, Ericsson, Bay Networks, as well as various universities and hospitals.
"The ATM access opportunity is growing explosively--at annual rates greater than 60 percent--and Yurie is the recognized leader in developing and delivering next-generation, highly-reliable, ATM WAN access solutions for multi-service networking," said Bill O'Shea, president of Lucent's Data Networking Systems group, in a statement.
"Adding Yurie to the Lucent team will help us meet our aggressive leadership and growth objectives in this business."